Master's thesis focuses on the comparison of mentoring and coaching of unemployed person entering labour market. Which approach is more siutable, considering unemployed person's needs, experience, knowledge and skills, which approach gives better results and what are advatages and disadvantages of both of them, are the questions anwsered by comparison between mentoring and coaching, based on three coaching and two mentoring process, using participatory action research approach. Effectiveness of the method depends on its characteristics and the needs of participant. Coaching is more suitable for an unemployed person with sufficient energy level for active participation in the process, developed abilities and skills of self-management and self-regulation and above all, with clear employment objectives. Mentoring is more suitable in cases where an unemployed person has certain limitations, when it needs to acquire specific knowledge and yet to develop skills for successful performance on the labor market, or when its employment objectives are unclear and needs more time to form them.