The Employment Service came into existence in India under the stress of post-war demobilization. Towards the end of the Second World War, the need for machinery that could handle orderly re-absorption of civil life, of a large number of service personnel and war workers who were about to release was keenly felt. Having regard to the complexity of the problem and in order to ensure uniformity in policies and effective co-ordination of efforts, it was considered necessary that the proposed machinery be directed and controlled by the Central Government.  In accordance with a scheme that was agreed upon by the Central and State Governments, the Directorate general of Resettlement and Employment (DGR&E) was set up in July 1945 and Employment Exchanges were gradually opened in several parts of the country.     

Till the end of 1946, Employment Service facilities were restricted to demolished service personal and discharged war workers. In 1947, consequent upon the partition of the country, the Employment Exchanges were called upon to deal with the resettlement of a large number of persons who were displaced as a result of partition. In response to popular demands, the scope of the service was gradually extended and by early 1948 Employment Exchanges were thrown open to all categories of applicants.

In 1952 under the chairmanship of Shiva Rao a Training and Employment Service Organistion Committee was appointed to review the set up and functions of the Employment Service and to make recommendations for its reorganization.  The day today administration of the organization was handed over to the State Governments with effect from 1^st of November 1956. The Employment Service is now the joint concern of the   Central and State Governments.

In 1960 Directorate General of Employment and Training (DGE&T) was formed as national head quarters of the Employment Service as well as the Craftsmen Training Scheme of the Ministry of Labour, Government of India.

At the DGE&T, the Director of Employment Exchanges is responsible for advising the Director General on matters concerning policy, procedure and co-ordination of the Employment Service

The Department of National Employment Sevice-Kerala was formed in the 1st of April 1957. The Director of Employment & Training is at the apex of the organization in the State. The Director of Employment in the State has his Head Quarters at Thiruvananthapuram. To assist him in administration a Joint Director, three Deputy Directors and an Administrative Officer were working in Employment Directorate. There are Regional Deputy Director's Office functioning at Thiruvananthapuram, Ernakulam, and Kozhikode at regional level, District Employment Exchanges at Districts level, and Town Employment exchanges at Taluk level.

For physically handicapped, separate Employment Exchanges are functioning at Thiruvananthapuram, Neyyattinkara, Kollam, Kottayam, Ernakulam and Kozhikode. There are Professional & Executive Employment Office functioning at Thiruvananthapuram, Ernakulam and Kozhikode to meet the needs of the professionally qualified candidates. At the University level, University Employment Information and Guidance Bureaus are functioning at Kerala University (Thiruvananthapuram), M.G. University (Kottayam), Cochin University (Cochin), Agricultural University (Mannuthy), and Calicut University (Kozhikode).

To impart training for SC/ST candidates there are Coaching cum Guidance Centre for SC/ST functioning at Ernakulam and Kozhikode. There are Self Employment Guidance Unit functioning at Kollam and Idukki. Apart from Employment Exchanges registration and renewal facilities are available at Employment Information and Assistance Bureaus situated in Attapadi, Kondotty, Vandoor, Manjeswaram, Devikulam, Payyannur. Under I.T.D.P two mobile Employment exchanges are functioning at Thodupuzha and Kalpetta.