Final answer:
A Public Employment Agency refers job applicants at no cost to employers, supporting the labor market and potentially reducing unemployment rates.
Step-by-step explanation:
The type of employment agency that refers job applicants at no cost to the employer is a Public Employment Agency. Unlike private employment agencies, executive search firms, and temporary employment agencies that may charge employers for their services, public employment agencies are often funded by the government and provide their services free of charge to both job seekers and employers.
This supports the overall labor market by matching potential employees with employers, which can contribute to lowering the natural rate of unemployment and reducing frictional unemployment.
Public Employment Agencies are typically government-funded and provide free services to both job seekers and employers.
They help match job seekers with job openings that match their skills and qualifications, facilitating the hiring process for employers without charging a fee. One example of a public employment agency is the American Job Center in the United States.
Therefore the correct answer is b) Public Employment Agency.