The Zero Long-term Unemployed Territories initiative is a place-based policy at national level that aims to eliminate long-term unemployment by providing permanent, voluntary jobs to all willing individuals excluded from the labour market. It is based on the principle that existing public spending on unemployment can be redirected to finance socially useful jobs that meet unmet local needs, without significant additional cost. Implemented through strong local governance structures and a participatory approach, the model combines job creation with tailored support and continuous evaluation.
Territories with zero long‑term unemployed people in France
Abstract
The Territories with Zero Long-Term Unemployed People (Territoires zéro chômeur de longue durée – TZCLD) initiative aims to demonstrate that long-term unemployment can be effectively addressed at the local level by providing sustainable, tailored employment opportunities to all individuals excluded from the labour market. The TZCLD initiative seeks to redirect “passive” public spending, such as unemployment benefits, into impactful social investment by using these resources to create purpose-driven employment enterprises that provide jobs for people experiencing long-term unemployment. The programme is based on the principle that no one is unemployable and that unmet local needs can be transformed into useful economic activities. The initiative is grounded in three core convictions that underpin its economic and social rationale. First, no one is unemployable, provided that jobs are adapted to individuals’ skills and capacities. Second, there is no shortage of work, as many socially useful activities remain unmet when market profitability is not the sole criterion for action. Third, the necessary financial resources already exist, since the societal cost of long-term unemployment exceeds the cost of creating jobs. Together, these principles support the idea that making the right to employment effective is both socially desirable and economically feasible.
Territories with Zero Long-Term Unemployed People in France Summary
Country: France
City: Not applicable
EU member state: Yes
Geographic scale: Country
City size: Not applicable
Date launched: 2016
Current status: Ongoing
Policy pillar(s): Labour Market, Public Services, Fair Climate Action
Target group(s): Unemployed or underemployed individuals
Funding and budget:
Total budget: EUR 62 000 000 (annually)
Funding sources: Local and national governments
EU funds/programmes: Not applicable
The TZCLD initiative responds to persistent structural unemployment driven by economic transformations, including globalisation and increasing labour market competition. These dynamics have led to the long-term exclusion of certain groups from employment, despite existing public policies and support systems. Long-term unemployment has wide-ranging social and economic consequences, affecting individuals’ wellbeing, family stability and territorial cohesion, while generating significant public expenditure. At the same time, many local needs remain unmet, pointing to a mismatch between available labour and useful activities. Finally, the programme is based on the premise that redirecting spending from passive unemployment benefits to active employment policies could be achieved at low or even zero net public cost
The initiative prioritises individuals who have been durably excluded from the labour market, recognising that long-term unemployed people face the greatest barriers to re-employment and experience the most severe social and economic consequences of unemployment. By focusing on this group, the programme seeks to operationalise the French constitutional principle of the right to employment, targeting those for whom existing labour market policies have proven least effective. This priority reflects both a social imperative, to reduce inequality, exclusion and stigma, and an economic rationale, given the high public costs associated with long-term unemployment.
The initiative is based on a territorial and participatory model, mobilising a wide range of local stakeholders, including residents, businesses, associations and public institutions. Central to this approach is the Local Committee for Employment (LCE), which coordinates the project at the local level and ensures collective ownership. Mobilisation focuses on both stakeholders and individuals who are long-term unemployed. A proactive outreach strategy is used to identify and engage all willing participants, including those who may be disconnected from institutional systems. The approach places individuals at the centre of the process, building on their skills, capacities and aspirations. The collective objective is to mobilise all available tools and resources within the territory to provide accessible, decent employment to any willing individual, ensuring that no one is left behind.
Implementation of the TZCLD initiative is based on a structured and place-based approach that combines local mobilisation, individual engagement, and the creation of new economic activities. The process begins with building a broad local consensus, led by a group of stakeholders and progressively formalised through the establishment of a Local Committee for Employment (LCE). This phase is critical to ensure strong political support, stakeholder buy-in and collective commitment to the objective of full employment at the local level. Once this governance structure is in place, the initiative focuses on identifying and engaging people who are long-term unemployed. Through outreach, information sessions and individual meetings, the programme seeks to reach all willing participants, including those who may be disconnected from institutional support systems. This phase aims to understand each person’s skills, aspirations and constraints, forming the basis for tailored employment pathways. In parallel, a systematic mapping of unmet local needs is carried out in collaboration with residents, businesses and public institutions. This inventory identifies socially useful activities that are not currently addressed by the market and that can be developed without competing with existing jobs. The matching of local needs with the skills of participants ensures that job creation is both relevant to the territory and adapted to individuals. Based on this diagnosis, one or more enterprises for employment (Entreprises à But d’Emploi – EBEs) are established, often building on existing social economy structures. These entities create additional, non-competitive jobs and offer permanent, voluntary employment contracts to participants.
The TZCLD initiative follows a phased, learning-oriented approach, with continuous evaluation embedded at each stage of implementation. The first phase, involving an initial group of ten pilot territories, confirmed the validity of the programme’s core assumptions. Building on these results, the second phase expanded the initiative to more than 60 territories. This scaling-up process enabled the comparison of diverse local contexts and strengthened the robustness of lessons learned, in preparation for potential national generalisation. A key component of the monitoring and learning framework is the TZCLD Observatory, launched in 2022 as a platform for research, knowledge-sharing and coordination. Bringing together a wide network of researchers and practitioners, the Observatory fosters interdisciplinary analysis and facilitates dialogue between local actors and the academic community. It supports access to field data, promotes evidence-based learning and disseminates findings through publications and events.
Build strong, place-based governance through local coalitions. The initiative highlights the importance of territorial coordination through structures such as Local Committees for Employment. By bringing together municipalities, businesses, associations and residents, these platforms foster collective ownership, align local actors and ensure that solutions are tailored to the specific needs and opportunities of each territory.
Adopt a participatory, people-centred approach. Placing individuals at the centre, by recognising their skills, aspirations and willingness to work, helps design more effective and inclusive employment solutions. Proactive outreach and engagement are essential to reach those who are often excluded from institutional systems and to ensure that no one is left behind.
Embed experimentation, evaluation and learning from the outset. The phased piloting approach and the creation of the TZCLD Observatory illustrate the value of combining implementation with rigorous research and continuous learning. Expanding the initiative gradually, while documenting impacts and refining methods, enables evidence-based scaling and supports policy credibility at national level.
Zero Long-term Unemployment Territories (website): https://www.tzcld.fr/
Territorial Experimentation Against Long-term Unemployment: https://etcld.fr/
This work is issued under the responsibility of the Secretary-General of the OECD, and does not necessarily reflect the official views of OECD Member countries.
This document was produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.
This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
Photo credits: © Territories Zéro Chômeur de Longue Durée
© OECD 2026
Attribution 4.0 International (CC BY 4.0)
This work is made available under the Creative Commons Attribution 4.0 International licence. By using this work, you accept to be bound by the terms of this licence (https://creativecommons.org/licenses/by/4.0/).
Attribution – you must cite the work.
Translations – you must cite the original work, identify changes to the original and add the following text: In the event of any discrepancy between the original work and the translation, only the text of original work should be considered valid.
Adaptations – you must cite the original work and add the following text: This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed in this adaptation should not be reported as representing the official views of the OECD or of its Member countries.
Third-party material – the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and for any claims of infringement.
You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work.
Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shall be Paris (France). The number of arbitrators shall be one.
