This report explores how reforms of Public Employment Services (PES) and active labour market policy (ALMP) systems in the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden) contribute to the common Nordic labour market. The report examines recent, ongoing and planned PES reforms and modernisation processes, the increased deployment of digital and Artificial Intelligence (AI) solutions, and co-operation practices between Nordic PES. In addition, the report provides a comprehensive overview of reforms and improvement processes in ALMP systems across OECD countries, highlighting common trends, showcasing best practices and making recommendations for the way forward for Nordic and OECD countries.