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

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.

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. 

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.

• Project public launch presentation (February 2025)

This type of support could be relevant for other countries that may want to complement or reform their publicly-provided employment services by using contracted providers, including through a trial pilot programme. Reaping the potential benefits of contracted-out employment services requires carefully considering several important aspects related to their design and implementation. Projects such as the one with Italy are designed to examine these aspects within a country’s specific institutional and labour market context. 

• Reforming the Swedish Public Employment Service
• Labour market integration of the long-term unemployed in Slovenia
• Raising the bar: Designing and implementing innovative contracted-out employment services in OECD countries
• Paying for results: Contracting out employment services through outcome-based payment schemes in OECD countries
• Employment services and active labour market policies
• Dromundo Mokrani, S., A. Lauringson and T. Xenogiani (forthcoming), The Role of Public Employment Services in Enhancing Labour Market Matching, Edward Elgar Publishing Ltd.