This case study focuses on an ESF-funded regional project in Tuscany, Italy, dedicated to improving labour market integration for vulnerable populations, including individuals with disabilities and those from disadvantaged backgrounds. The initiative prioritised social inclusion, poverty alleviation, and employment by implementing tailored employability plans, skills development programmes, and personalised coaching. Nearly 73% of participants secured internships with local businesses, and 90% completed their placements. The project underscored the importance of strengthening public-private partnerships and raising employer awareness about inclusive recruitment practices. ESF support was instrumental in enabling a personalised approach and fostering collaboration across sectors—bringing together businesses, local authorities, and social service organisations to achieve shared goals. Two additional ESF case studies in Italy explore a national project on women’s labour market participation and a regional project for the labour market integration of trafficking victims.
Integrating vulnerable groups in the labour market in Tuscany, Italy
Abstract
In 2016, Italy adopted the Third Sector Reform Law, establishing foundational principles aimed at streamlining and unifying the third sector. This sector includes private non-profit organisations with civic, social, or solidarity objectives, including social enterprises. A key feature of the Law is its empowerment of the government to draft decrees that facilitate the issuance of secondary legislation, further elaborating and shaping the Italian social sector (Impact Europe, 2018[1]). Institutions responsible for third sector policy are the Ministry of Labour and Social Policy, the National Council of the Third Sector, as well as regional and local authorities (OECD, 2023[2]).
Within this national framework, the regions of Tuscany and Piemonte stand out for their strong traditions in the social economy and social innovation. Piemonte boasts a network of social co-operatives and enterprises dedicated to employment, social inclusion, and care services. The region is a leader in innovation, illustrated by initiatives such as We.Ca.Re (Welfare Cantiere Regionale) initiative, which promotes welfare through cross-sector collaboration among public, private, and third-sector actors to enhance inclusion, employment opportunities, and care services (Ires Piemonte, 2021[3]). Tuscany has promoted experimental models of social-labour inclusion, focusing on empowering vulnerable populations with tailored employment pathways and fostering collaboration between public agencies and private stakeholders (Ismeri Europa, 2019[4]).
Italy received EUR 24.8 billion in ESF funding (EU and national co-financing combined) during the 2014-20 programming period, accounting for 26.6% of the country’s European Structural and Investment Funds (European Commission, 2025[5]). ESF funding has been prioritised to support areas such as crisis recovery and resilience, employment, educational and vocational training, and social inclusion.
ESF+ is implemented at the national level by the Ministry of Labour and Social Policies; the Ministry of Education and Merit; and the Ministry of Health. Six programmes stem directly from ESF+ and cover the following themes: Southern Medium Cities, Schools & Skills, Social Inclusion, Youth & Women, Health Equity and Technical Assistance for Cohesion Capacity (see Figure 1). At the regional level, each of the 21 regions in Italy also has its own Regional Managing Authority and programme.
Source: Authors’ own elaboration based on information provided by Italy.
The project focused on integrating vulnerable individuals with disabilities or from disadvantaged backgrounds into the labour market. Such groups often encounter significant barriers to employment, leading to increased dependence on welfare systems. Recognising this, the Tuscany Region sought to provide tailored opportunities that would help these individuals and reduce their reliance on social assistance. Given that employment systems often overlook these populations, the initiative sought to bridge this gap by facilitating access to both public and private sector labour markets.
The project delivered positive outcomes for the beneficiaries. Almost 73% of participants successfully secured internships with businesses, representing a promising step toward inclusion for typically excluded vulnerable groups (Ismeri Europa, 2019[4]). Among those placed, 90% completed their internships without dropping out. This high retention rate demonstrates the effectiveness of the personalised support provided through tutoring and accompaniment programmes, which helped participants adapt to their new work environments and build confidence in their skills.
The main challenges of the project were the sustainability of employment and the private sector's reluctance to employ vulnerable individuals. Despite strong initial alignment between participants and employers, long-term job retention remained low, with fewer than 30% of participants maintaining stable employment six months after the program concluded. Additionally, the private sector's hesitance to hire individuals from vulnerable backgrounds—particularly those with disabilities or from disadvantaged socio-economic groups—highlighted persistent gaps in labour market inclusion (Ismeri Europa, 2019[4]).
To address these issues, the project focused on enhancing individual support for participants and strengthening cross-sector collaboration with businesses. Personalised employability plans, tailored skills development, and tutoring programmes contributed to improved job retention and helped participants build confidence and workplace performance. Furthermore, increased engagement and communication between the private sector and the project aimed to promote better job matching and raise employers' awareness of the benefits of inclusive hiring practices.
Funded by the ESF with EUR 7.8 million, the initiative prioritised social inclusion and poverty reduction through increased labour market participation of vulnerable groups (Ismeri Europa, 2019[4]). This funding enabled the implementation of personalised approaches, including bespoke employability plans for each participant. It also facilitated extensive collaboration among social service organisations, local authorities, and businesses, which proved important in overcoming some of the barriers to integrating vulnerable individuals into the labour market.
References
[5] European Commission (2025), Cohesion Open Data Platform - Italy, https://cohesiondata.ec.europa.eu/countries/IT/14-20.
[1] Impact Europe (2018), The Third Sector Reform, https://www.impacteurope.net/sites/www.evpa.ngo/files/publications/EVPA_National_Policy_Nexus_2018_IT_The_Third_Sector_Reform.pdf.
[3] Ires Piemonte (2021), “Evaluation Report”.
[4] Ismeri Europa (2019), “Evaluation service for European programme 2014/2020 - Lot 2: POR FSE Tuscany Region 2014-2020”.
[2] OECD (2023), “Country Fact Sheet: Italy”, https://www.oecd.org/content/dam/oecd/en/topics/policy-sub-issues/social-economy-and-social-innovation/country-fact-sheets/country-fact-sheet-italy.pdf (accessed on 1 April 2025).
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