Contemporary labor markets are suffering from the recession and structural shifts, which can cause various mismatches through processes of search friction. A lack of informational transparency among worker- and job characteristics is the common denominator of these search frictions. In this paper, the potential of the career ePortfolio, which consists of information beyond what is typically found in a jobseeker's resume, in reducing these mismatches and search frictions is explored. The career ePortfolio, it is argued, leads to better worker-to-job matches, increased worker mobility, and reduced unemployment levels and transaction costs. By exploring mismatches and search frictions theoretically, the required features of such a career ePortfolio were identified. A multi-disciplinary approach was used, drawing from literature on labor market economics as well as human resource management. It was concluded that the career ePortfolio should consist of competence-based information on both the aggregate and individual levels in order to facilitate workers and firms in their career and personnel planning and help government and educational institutes devise appropriate labor market policies and curricula. Major challenges include the required shared understanding of competences among workers and firms, given their heterogeneity, as well as the need for credible information, given the asymmetrical nature of labor market information.