Italy Expands Public-Private Job Services Under Ambitious Labour Market Reform

Italy is attempting one of the largest labour market reforms in its modern history as the government works to rebuild an employment services system long criticised for inefficiency, regional inequality and weak public trust. A major report by the Organisation for Economic Co-operation and Development (OECD), prepared with support from the European Union and the European Commission, says the country has made important progress but still faces major structural problems that prevent millions of people from finding stable work.

For years, Italy’s public employment offices struggled to play a meaningful role in helping unemployed people secure jobs. Many Italians relied instead on informal networks and personal contacts to find work. The situation was particularly difficult in southern regions, where unemployment rates remained high and employment services were often poorly resourced. Youth unemployment, low labour market participation and regional economic gaps became long-term features of the Italian economy.

The OECD report argues that Italy is now trying to modernise this outdated system through a combination of digital tools, private-sector partnerships and personalised employment support.

The GOL Programme at the Centre of Reform

At the heart of the reform effort is the GOL programme, short for Garanzia di Occupabilità dei Lavoratori or Workers’ Employability Guarantee Programme. Launched in 2021 under Italy’s National Recovery and Resilience Plan, the initiative aims to provide employment support and training to at least three million people by 2026.

The programme is designed to help a wide range of groups, including unemployed people, women, young workers, older workers and people facing social exclusion. By early 2025, more than 3.5 million people had already entered the programme, making it one of the biggest labour market interventions ever introduced in Italy.

Participants are assessed through detailed profiling systems that examine their skills, work history and barriers to employment. Based on these assessments, they are placed into different support pathways. Some receive rapid job-search assistance, while others are directed toward reskilling programmes, vocational training or broader social inclusion support.

The OECD says this personalised approach represents a major shift away from the older “one-size-fits-all” model that previously dominated Italy’s labour market policies.

Public and Private Sectors Working Together

One of the most important changes highlighted in the report is the growing role of private providers in delivering employment services. Italy’s labour market reforms over the past two decades have gradually opened the system to recruitment agencies, training institutions, labour consultants and social organisations.

Today, the GOL programme relies on a broad network of public employment centres alongside private agencies and third-sector organisations. The OECD says this mixed system has increased the country’s ability to reach vulnerable groups and provide more specialised services.

However, the report also warns that Italy’s highly decentralised structure creates major differences between regions. Northern regions such as Veneto and Bolzano generally report stronger outcomes, while southern regions, including Campania and Sicily, continue to face serious difficulties in implementing services effectively.

The OECD notes that these regional differences are not only economic but also institutional, with some regions having much stronger administrative capacity than others.

Weak Incentives and Too Much Bureaucracy

Despite the scale of the reforms, the OECD identifies several weaknesses that continue to limit the system's effectiveness. One major problem is the complex accreditation process for employment providers. Different regions apply different rules and standards, making the system fragmented and difficult to manage.

The report also criticises the current payment structure used for providers. While agencies receive some rewards for helping participants find jobs, much of the funding still depends on delivering services rather than achieving long-term employment results. According to the OECD, this weakens providers' incentives to focus on sustainable job placements.

Past programmes also showed evidence of “cream-skimming”, where providers focused on participants who were easier to place into work while giving less attention to people with more serious barriers.

The report says stronger monitoring systems and clearer accountability are needed to ensure that all jobseekers receive equal support.

Digital Technology Seen as Key to the Future

The OECD believes digitalisation could play a major role in improving Italy’s employment services. Italy has already introduced the SIISL digital platform, which connects welfare systems, job vacancies, training opportunities and employment services in a single network.

The platform allows users to search for jobs, access training programmes and receive career guidance. Artificial intelligence tools are also being introduced to improve skills matching and labour market analysis.

Still, the OECD says Italy must improve data-sharing between institutions and create stronger systems for evaluating provider performance. Drawing on examples from countries such as Sweden, Australia and the United Kingdom, the report recommends more transparent performance ratings, stable long-term funding and stronger national co-ordination.

The OECD concludes that Italy has finally laid the foundations for a more modern and inclusive employment system. But whether these reforms succeed will depend on the country’s ability to reduce regional inequalities, improve accountability and turn ambitious policy plans into consistent results across the entire nation.