This case study examines an initiative in Austria, supported by the European Social Fund (ESF), that aims to reduce structural inequalities in the labour market, with a focus on gender equality and the inclusion of marginalised groups. Implemented through seven pilot projects and later scaled nationally, the initiative targeted small and medium-sized enterprises (SMEs) by promoting equal pay, work-life balance and women’s access to leadership. By mid-2018, over 1 000 companies engaged with the programme. Challenges related to timelines, data collection, and sectoral barriers were addressed through adaptive project management and stakeholder engagement. ESF support was pivotal in enabling social innovation, tailored consulting and the professionalisation of HR practices in Austria’s social economy.
Addressing structural inequalities in the labour market in Austria
Abstract
In Austria, the social economy is diverse and focuses on addressing societal challenges and fostering inclusive growth. In 2024, 136 939 social economy entities operated in the country, predominantly associations, as well as co-operatives, foundations, mutual benefit societies, and social enterprises. Most of these entities (78.7%) are small-scale, employing 86,827 people, with half of them being women (49.57%) (CIRIEC et al., 2024[1]). In 2020, these entities contributed a gross value added of EUR 10.3 billion to the national economy (OECD, 2023[2]).
Austria actively promotes social innovation through national and regional strategic initiatives (CIRIEC et al., 2024[1]). The “Open Innovation Strategy for Austria”, developed under the Federal Ministry of Science, Research, and Economy, aims to enhance the innovation system’s efficiency and output by promoting openness and collaboration. It supports social innovation through an open innovation platform for societal challenges, reflecting Austria’s commitment to addressing global issues through inclusive, collaborative innovation processes (Open Innovation, 2021[3]). Austria’s “Strategy for Research, Technology, and Innovation” also emphasises the importance of social innovation in addressing societal challenges, including reducing fragmentation in research and tackling the climate crisis (Federal Government Republic of Austria, 2020[4]). Institutions such as the Centre for Social Innovation (Zentrum für Soziale Innovation; ZSI) in Vienna help to advance social innovation by linking research with practical applications. ZSI’s involvement spans local, regional, and national initiatives, collaborating with local authorities and international organisations to address social issues (ZSI - Centre for Social Innovation, n.d.[5]). In this context, Austria has shown a strong commitment to gender equality.
For the 2014-20 programming period, Austria received EUR 556 million in ESF funding, adding up to EUR 990 million including national co-financing. The ESF amount represented 7% of the European Structural and Investment Funds allocated to the country. Intervention areas for 2014-20 are, in order of allocated amounts: (1) educational & vocational training, (2) social inclusion, (3) fostering crisis repair and resilience, and (4) sustainable & quality employment (European Commission, 2025[6]). Innovative projects, such as addressing structural inequalities in the labour market, illustrate how ESF resources support gender equality in areas ranging from employment to labour market integration and social inclusion.
Between 2021 and 2023, Austria established the National Competence Centre for Social Innovation (SI plus) to foster an innovation-friendly and sustainable project environment. Initiated by the EU Programme for Employment and Social Innovation (EaSI) and co-financed at the national level by the Federal Ministry of Labour and Economy, SI plus served as the main hub for capacity building for social innovators in Austria, while also mapping the national social innovation ecosystem. Since 2023, the initiative has continued to receive co-financing from the ESF+ and the Federal Ministry of Labour, Social Affairs, Health, Care and Consumer Protection. The Competence Centre supports the development and implementation of socially innovative initiatives within and beyond the ESF+. SI plus offers comprehensive support, including knowledge, methodologies, expertise, as well as documentation and monitoring of good practices. It also facilitates networking and provides collaborative spaces for developing, testing, measuring, and scaling innovative, future-oriented solutions.
In Austria, the ESF+ is managed at national level by two Managing Authorities: one for the ESF+ Employment Programme, which includes the Just Transition Fund (JTF), and one for the ESF+ Programme to fight material deprivation. In addition, two national-level and 9 regional-level Intermediary Bodies are involved in implementing the Employment Programme. As shown in Figure 1, the main priorities of ESF+ are gender equality, active ageing and inclusion, support for young people, access to lifelong learning, social innovation and establishing a Just Transition Fund.
Source: Authors’ own elaboration based on information provided by Austria.
Note: The overall funding amount includes ESF+ and national co-financing but excludes the Just Transition Fund (JTF), although the ESF+ programme “Employment Austria & Just Transition Fund” also receives JTF funding.
The project “Addressing structural inequalities in the labour market” focused on addressing structural inequalities in Austria’s labour market, particularly in small and medium-sized enterprises. In this context, structural inequalities refer to deep-rooted disparities based on factors such as gender, age, and education, which often result in unequal access to opportunities, lower wages and limited career advancement. As part of Austria’s ESF Operational Programme 2014-20, the project promoted gender equality through innovative and experimental approaches. Between mid-2017 and mid-2019, seven pilot projects were implemented and evaluated to guide the national roll-out from 2020 to 2023 (Schiffbänker, Schön and Hock, 2019[7]). The initiative promoted equal pay and career advancement, while also fostering work-life balance to help employees manage professional and personal responsibilities.
It further aimed to empower women and marginalised groups through targeted initiatives by improving qualifications and career planning for women in sectors like cleaning. The project increased women’s access to leadership roles, supported workplace inclusion, and created better employment opportunities for marginalised groups such as women with refugee backgrounds. The project also professionalised HR processes to reduce structural bias and embed gender equality in organisations.
Socially innovative practices introduced by the project included integrating gender equality in sectors such as the cleaning industry, leadership roles, and companies with low-skilled workforces, while addressing work-life balance through regional cooperation. By mid-2018, more than 1 000 companies signed agreements for consulting services, representing 51% of the target, showing significant progress towards structural change (Schiffbänker, Schön and Hock, 2019[7]). The project leveraged stakeholder engagement to improve outcomes. Regional collaboration in projects such as “Der V/Faktor” and industry-specific approaches like “FairPlusCleaning” facilitated better alignment with local and sector-wide needs. Public outreach efforts further amplified the project’s impact by raising awareness among broader audiences.
The project's main challenges involved timeline delays, data collection issues, and sector obstacles. The “div-in-co” and “inclusion@work” projects struggled to meet acquisition targets due to structural challenges in engaging businesses. The reliance on qualitative data also limited the evaluators' ability to perform a thorough analysis, while the varying timelines and approaches of pilot projects complicated direct comparisons (Schiffbänker, Schön and Hock, 2019[7]).
To address these challenges, targeted solutions were implemented. To mitigate timeline delays, the project extended timelines where necessary, providing sufficient time for stakeholder engagement and adjustments. To improve data collection, the project adopted mixed method approaches that combine qualitative and quantitative data, enhancing the overall evaluation process. Finally, to overcome structural barriers to business engagement, outreach strategies were tailored, aligning gender equality initiatives with the specific needs of companies. These solutions helped affirm that the projects were more adaptable, measurable, and aligned with the realities of participating businesses.
ESF funding was instrumental in enabling the experimentation and evaluation of the project. It provided resources for tailored consulting services, stakeholder coordination and public relations efforts. By mid-2018, the project successfully engaged over 1 000 companies, surpassing the initial target, and laid the foundation for scaling these initiatives nationwide (Schiffbänker, Schön and Hock, 2019[7]). ESF funding also facilitated stakeholder engagement, allowing projects like “FairPlusCleaning” to secure industry support early on. It also supported measures such as follow-up workshops and network maintenance, allowing the long-term impact of the initiatives.
References
[1] CIRIEC et al. (2024), “Benchmarking the socio-economic performance of the EU social economy. Improving the socio-economic knowledge of the proximity and social economy system.”, https://www.ciriec.uliege.be/en/publications/etudesrapports/benchmarking-the-socio-economic-performance-of-the-eu-social-economy-2024/ (accessed on 31 January 2025).
[6] European Commission (2025), “Cohesion Open Data Platform - Austria”.
[4] Federal Government Republic of Austria (2020), “RTI Strategy 2030: Strategy for Research, Technology and Innovation of the Austrian Federal Government”, https://era.gv.at/public/documents/4489/RTI_Strategy_2030-1-1.pdf (accessed on 28 January 2025).
[2] OECD (2023), Country Fact Sheet: Austria, OECD.
[3] Open Innovation (2021), “Open Innovation Strategy for Austria”, https://projects.research-and-innovation.ec.europa.eu/sites/default/files/kvp/files/kvp-open-innovation-strategy-austria.pdf (accessed on 31 January 2025).
[7] Schiffbänker, H., L. Schön and M. Hock (2019), Evaluierung ESF IP Gleichstellung, Joanneum Research Policies / Prospect Research & Solution.
[5] ZSI - Centre for Social Innovation (n.d.), Zentrum für soziale Innovation / Centre for social innovation, https://www.zsi.at/en/home (accessed on 14 January 2025).
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