This paper discusses the development of the Public Employment System in Brazil and the dliemnas faced to ensure its financing through the Worker`s Support Fund (FAT). Section 1 presents the ongoing structure of the Public Employment System and the path followed by its main policies during the years 1995-2005. Section 2 discusses some of the system`s important limitations, as well as the agenda for its improvement outlined in the II National Congress of the Public Employment System which took place in 2005. In section 3, the evolution of FAT`s assets, incomes and expenses is examined; more specifically, the reason for the resource restriction on the employment services is discussed, as well as the consequences for the Public Employment System. In the last section, alternatives are suggested to tackle the issue of employment policies financing.