This report, the fourth in a series addressing key labour issues, reviews the employment conditions of public service employees in public administration and government-provided services, such as education, health and social welfare. Issues such as employment security, recruitment, career development, pay, working time and other conditions of work, social security and other benefits are examined. The report is based on the wealth of information that the ILO has collected for, and discussed in, its various meetings and committees. Public service employment conditions have - almost universally - deteriorated during the 1980s, in absolute terms and in comparison with those in the private sector. This was caused by the high government budget deficits, brought about by the debt contracted in the early 1980s and the high real interest rates that have prevailed since. In an introductory chapter, the report also shows that the global employment situation is improving only very slowly in spite of resumed growth in OECD and most Asian countries. Faced with limited resources and an increasing demand for their services, governments have to improve their productivity. The report reviews various means of doing so, such as decentralization, open recruitment and promotion procedures, higher salary levels, individual wage incentives, more democratic and delegating management styles and - particularly in the developing countries - training geared towards people-oriented skills and the policy role of senior administrators.