The main purpose of this study was to analyze challenges in the activity of the Public Employment Service in Kosovo. Right at the outset, international regulations and standards for Public Employment Service were reviewed along with empirical studies. This helped in the design of the research instruments, an in-depth interview and a semi structured questionnaire. The participants of the study were all Heads of Employment Offices as well as the Heads of Vocational Training Centers in Kosovo. The major findings of this study included Public Employment Service should have a permanent internal training system; it should increase the awareness of staff about employment policies; active labor market programs should be more job-oriented; on-the-job training should be adopted as a policy for employment. There was a consensus about employment policies to support the employment of people with disabilities, rural women and other marginalized groups. It was also shared by the respondents that Public Employment Service must increase the level of coordination with the private sector and the Vocational Training Centers must provide trainings in line with labor market demands.