The issue of unemployment and the operation of the labour market is a very centralrnissue to the modern economy, both in the developed and the developing world. Thernoperation of this market is a fascinating and complicated process. Workers differ inrntheir abilities, attitudes, and tastes. Productivity depends not only on abilities but alsornon how well a worker is matched to a job. The question of unemployment is tied tornthe social, political and economic atmosphere in every country. It is an issue to thernindividual, to the firms and to the government as well. As a result studies on therncauses, effect and remedies to unemployment problems have captured the attention ofrnall these agents.rnThe mam cause of unemployment according to most studies is the high rate ofrnpopulation growth coupled with low level of economic growth which is manifestedrnby the slow pace of job creation by the economy. The educational system as a majorrnsupplier of the labour force is also an important area related with the problems ofrnunemployment. The existing educational system not only supplies the economy arnlabour force that far exceeds in number the available jobs but also a labour forcernwhich invariably does not fit the existing jobs and vacancies.rnThe problem of unemployment is also related to the functioning of the labor market,rnwhich in large part is the concern of this paper. The existence of an adequatelyrnfunctioning labor market which sends the relevant signals to help adjust the mismatchrnbetween existing skills and the skills needed by the economic and. highlightÂ£ the gap .rnbetween unfilled and filled vacancies is of paramount importance to the Issue ofrnunemployment.rnAvailable evidence indicates that many vacancies remain unfilled despite thernexistence of a large unemployed labor force. Information found from MoLSA showedrnthat over 23% of vacancies remained unfilled. The existence. of the considerablernunfilled vacancies in the midst of a large unemployed labor force depicts the failurernof the labor market.rnIn this regard employment services can play a crucial role by addressing therninformation and skill gaps as they are centers for collection, compilations andrndissemination of labor market information. In evaluating the employment agenciesrnunfortunately most of them are not adequately staffed and the necessary equipmentrnare often scarce. As a result of this coupled with a poor policy environment, legalrnframework and economic incentives most employment agencies are not in a positionrnto provide a commendable service and hardly provide the expected level and qualityrnof servicesrnThe present study which examines the willingness of job seekers to pay for suchrnservices, will contribute in drawing attention of the policy makers and the public atrnlarge and facilitate the realization of the potential roles of employment service to playrntheir part in addressing unemployment problems. It also contribute for the elucidationrnof economic grounds on the ongomg dialogue related to how and by whomrnemployment service should be provided.rnIn the present study an attempt has been made to economically value the role ofrnemployment services. The study has confirmed that the job seekers attachrnconsiderable value to employment services and are willing to pay for a placementrnservice rendered by employment agencies. The study has shown that in Addis AbabarnAdministrative region alone the placement services of employment agencies has anrneconomic value worth over 18 million Birr per annum. This estimate considers onlyrnthe value attached by unemployed job seekers to placement services alone andrnrepresents a very small portion of the service, that employment agencies are expectedrnto be perform.