This case study examines a national project in Italy, funded by the European Social Fund (ESF), aimed at reducing persistent gender gaps in the labour market through social innovation, skills development and work-life balance issues. The project responded to regional disparities and inequalities caused by the COVID-19 pandemic, promoting women’s employment, entrepreneurship and career progression. It addressed both supply and demand sides of the labour market by offering vocational training, promoting flexible work arrangements and engaging businesses in implementing smart working solutions. The initiative benefited from collaboration among regional and national authorities, businesses and universities. It demonstrated how ESF can enable systemic change by helping to align legal frameworks with targeted action to support gender equality and inclusive labour market participation. Two additional ESF case studies in Italy focus on the inclusion of trafficking victims in Piemonte, and vulnerable people integration in the labour market in Tuscany.
Active labour market policies for women in 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 aims to address Italy’s persistent gender gap in the labour market, a challenge intensified by regional disparities and the impacts of the COVID-19 pandemic. Its objectives include reducing women’s inactivity and unemployment rates, closing wage gaps, and promoting women’s career advancement and entrepreneurship. To achieve these goals, the project introduced innovative labour policies and initiatives such as professional training programmes designed to diversify women’s skill sets, work-life balance seminars to support women in reconciling professional and family responsibilities, and partnerships with businesses to implement flexible working hours and remote work arrangements (Anpal, 22[6]).
The project is socially innovative and addresses both demand and supply side issues of the labour market. On the demand side, businesses are increasingly attuned to women’s needs, promoting flexible work arrangements and remote working options that enable employees to better balance professional responsibilities with family commitments by providing greater schedule flexibility. On the supply side, skills development initiatives and work-life balance programmes empower women to access, participate in, and succeed within the labour market. This coordinated approach fosters systemic change and enhances the overall impact of relevant policies. (Anpal, 22[6]).
Italy’s diverse socio-economic and demographic landscape posed significant challenges to standardising initiatives across regions. The COVID-19 pandemic disrupted programme implementation and exacerbated gender inequalities, particularly affecting women balancing work and family responsibilities. Additionally, strengthening stakeholder engagement and tailoring solutions to regional contexts presented further obstacles (Anpal, 22[6]).
To address these issues, the project employed region-specific pilot programmes to test and refine best practices. Flexible working hours and remote working arrangements helped meet work-life balance needs, while stakeholder engagement through workshops and partnerships with businesses fostered inclusive and sustainable strategies. A balanced approach—combining standardisation with regional adaptation—was important to avoid one-size-fits-all solutions.
ESF funding - EUR 1.5 million- was instrumental in supporting the implementation of training programmes, work-life balance initiatives, and pilot projects. This funding facilitated collaboration among key stakeholders, including local and regional governments, universities, and businesses, enabling a coordinated response. By promoting social innovation and supporting legal and regulatory frameworks, the ESF helped develop actionable strategies to reduce gender disparities in Italy’s labour market. The programme’s success underscored the importance of sustained investment in addressing systemic inequalities.
References
[6] Anpal (22), “Independent Evaluation Services within the Framework of the Activities of the National Operational Programme “Active Employment Policy Systems” ESF 2014-2020”.
[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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