Public institutions are key players in the regional labour markets in the Czech Republic. Their activities are constrained by economic policies, which are aimed at increasing employment and the effi ciency of the labour markets. Our analysis uses a questionnaire to collect data from the institutions and evaluate their perception of the regional labour market. The results suggest that active employment policy instruments and passive policy instruments are perceived as ineffi cient and inappropriate. The unemployed usually have no previous job experience, completed only primary education and are not willing to travel to work. The pressing problem is the quality of education and the generous social benefi ts that makes employment policy ineffi cient for the least skilled unemployed.