Strengthening public-private partnerships in the delivery of employment services in Italy 

The European Commission in cooperation with the OECD and the Directorate-General for Structural Reform Support (DG REFORM), is supporting Italy to strengthen its capacity to contract out employment services. Specifically, the Italian Ministry of Labour and Social Policies has requested technical support to develop a new model for the provision of contracted-out Active Labour Market Policies (ALMPs) throughout Italy. The action is funded by the European Union via the Technical Support Instrument (TSI). 

Context

Despite recent improvements, unemployment rates in Italy remain well above the European Union (EU) average. Public employment services (PES) in Italy struggle to engage with jobseekers, as illustrated by the share of jobseekers who are in regular contact with public employment services (18.7%), the lowest in the EU in 2020. Contracted-out employment services offer the potential to help regional PES address many of the existing labour market challenges, including better tailoring of services through the use of specialised service providers and allowing jobseekers to choose their preferred provider. Some regions in Italy still lack a fully functioning system for contracted-out employment services, with fragmented provider accreditation and gaps in jobseeker support. National schemes intended to harmonise and expand these services have struggled with low uptake and limited impact due to design flaws and overlap with other programmes. A thorough assessment of the current system and lessons from past efforts is needed to develop effective new solutions.

Support measures

Starting in October 2024 and for a period of two years, the OECD, in cooperation with DG REFORM, will work with Italy’s national and regional authorities to develop a new model for delivering contracted-out employment services. This model will establish clear guidelines and common standards for private entities to improve the quality of services provided to jobseekers. By fostering a more robust employment services market based on shared principles and standards, the model aims to provide jobseekers with more tailored support to meet their specific needs. It also seeks to reduce regional disparities by equipping regional and local employment offices with tools for effectively implementing and overseeing contracted providers. 

The Project includes the following components:

Expected results

In the short to medium term, the project aims to strengthen the capacity of Italian public authorities to effectively contract out employment services and to promote public-private partnerships in the area of ALMPs. By building institutional and administrative capacity at national, regional and local levels for improving employment services, the project will support Italy's transition towards socially inclusive, green and digital reforms. In the long term, the project is expected to contribute to improved labour market outcomes in Italy, fostering sustainable economic and social convergence, resilience and recovery.