The Public Employment Service of South Africa (PES-SA) registers unemployed work seekers and placement opportunities to enable the Department of Labour (DoL) to place as many of these work seekers as possible in work. The aim of the present study is to identify challenges in the implementation of PES-SA, and to identify and make recommendations on areas for improvement and strengthening. The study is restricted to two of the six main PES-SA service offerings: (a) Registration Services and (b) Recruitment and Selection Services. The study was partially a process evaluation and partially an impact evaluation. The process evaluation assessed the quality of PES-SA‟s systems, structures, capacity, management and strategic focus. The purpose of the impact evaluation was to understand the challenges and gaps in delivery and implementation, the reasons behind the low matching success, and the extent of uptake by users. The evaluation therefore had a technical data-evaluation component and a component which assessed the reasons behind statistical and other quantitative data patterns. The study was conducted in Mthatha Department of Labour, Eastern Cape. The sample of the study was drawn from workseekers that are in the database and the Researcher drawn 40 respondents and the use of quantitative method was done. A questionnaire was developed and issued out to respondents. The Public Employment Service staff in Mthatha, Department of Labour was also interviewed. All five Employment Service Practitioners and a Career Counsellor were interviewed. A qualitative study was used for these respondents. In the responses of both teams it was deduced that the intention of the service is good but up to this far it has not proven any impact on the reduction of unemployment. Reasons behind the failure of the service were outlined to be the reluctance of the employers to utilise the service and the IT systems that is failing. The staff also mentioned that they were never trained on the service and therefore finds it difficult to render some of the services. Another challenge that was picked up from staff members is that the service is not yet legislated.