Scaling What Works: How Social Innovation Helps Solve Long-Term Unemployment in Europe
Long-term unemployment remains one of Europe’s toughest challenges. For those who have been out of work for more than a year, the barriers to re-entry only grow – skills fade, confidence declines, and exclusion deepens. Traditional labour market measures have often struggled to reach them. But across Europe, innovative approaches are showing that there is another way forward. With the support of the European Social Fund Plus (ESF+) Social Innovation+ (SI+) initiative, these solutions are now being scaled up across borders.
Proven Models That Inspire Europe
Across EU Member States, several pioneering models have already demonstrated that long-term unemployment can be addressed in new and effective ways:
- Austria’s Marienthal Job Guarantee Pilot (MAGMA). In the town of Gramatneusiedl, every long-term unemployed person was offered a job tailored to their abilities. The result was striking – long-term unemployment in the community was virtually eliminated, proving that guaranteed work adapted to individual skills can deliver both economic and social benefits.
- France’s Territoires Zéro Chômeur de Longue Durée (TZCLD). Since 2016, this initiative has shown how redirecting the costs of unemployment into wages for community-based jobs can restore income, dignity, and purpose. Jobs are voluntary, fairly paid, and created to meet local needs, demonstrating that no one is unemployable when the right opportunities are in place.
- Belgium’s adaptation of the French model. Inspired by TZCLD, Belgium has piloted its own job guarantee schemes, proving that such innovations can travel across borders and be adapted to different institutional contexts. By anchoring initiatives in local partnerships, Belgium has shown that scaling models is possible when communities and policymakers work together.
- Germany’s Solidaric Basic Income (SBI) Project in Berlin. This programme created publicly funded jobs in community-benefiting roles that do not compete with the private sector. Beyond providing income and stability, SBI helped participants regain routine, purpose, and confidence – showing that long-term unemployment is not a permanent status, but a challenge that can be overcome with the right support.
- The Netherlands’ Basisbaan Model. By offering basic jobs at municipal level for people excluded from the labour market, this initiative highlights how creating employment opportunities with clear social value can help individuals reconnect with society, gain work experience, and take steps towards more sustainable employment.
These models have three things in common: they are people-centred, locally grounded, and evidence-based. They show that with the right support and investment, long-term unemployment can be turned into lasting inclusion.
From Local Innovation to European Scale
The EU is now translating these lessons into transnational action. Under the Call “Innovative Approaches Tackling Long-Term Unemployment”, European Competence Centre for Social Innovation selected nine projects that scale working social innovations. With a combined EU investment of €21.7 million, these projects involve 110 organisations across 15 Member States. Over the next three years, they will support more than 800 people who have been unemployed for a long time, helping them to re-enter the labour market with skills, confidence, and dignity.
“These projects prove that social innovation is not only about new ideas – it is about scaling what works. By supporting cooperation across countries, we ensure that tested solutions for long-term unemployment can benefit more people, in more places and faster,” said Miglė Aleksonytė, head of project management group at the European Competence Centre for Social Innovation.
The selected projects will work hand in hand with local employers, municipalities, NGOs, and communities. They will adapt proven approaches from Austria, France, Belgium, Germany, the Netherlands, Spain, Italy and Sweden to new national and regional contexts. Through mutual learning events, the projects come together to exchange progress and lessons learned, while study visits allow them to observe real-life examples of how social innovation works on the ground.
For those directly involved, social innovation delivers much more than employment. It restores confidence, belonging, and the belief that change is possible. As one of the participants, Katarzyna Jaszczuk from Fundacja Innowacja i Wiedza (Poland), explained: ‘Social innovation is an effective way to tackle long-term unemployment because it does more than just find people jobs. It addresses the real reasons why our clients are out of work, tackling multiple barriers like low self-esteem, isolation, disability, and a lack of skills or connections. In social innovation, the power lies in local communities. These communities are enriched and strengthened by a professional support model, which helps people connect and get to know local partners, understanding each other’s motivations and goals. This builds a supportive community where people who are out of work can connect with others, regain confidence, and learn new skills with the individualized support of professionals. For those who’ve been unemployed for a long time, this kind of social support is critical. It gives them a network and the courage they need to return to the job market. This model also creates economic benefits for both employees and local employers, who often struggle to find motivated and dedicated workers. The social innovation model gives the opportunity for a solution to be tested on a relatively small group, which later allows it to be scaled in other communities.’
Why Social Innovation is the Sustainable Answer
Unlike short-term labour market measures, social innovation tackles the root causes of long-term unemployment by creating inclusive pathways that are adaptable, community-driven, and built to last. These approaches go beyond temporary fixes: they equip people with skills for the future, connect them to meaningful work, and strengthen the social fabric of communities. Because they redirect existing resources –such as unemployment benefits – into productive employment, social innovations also make economic sense. Most importantly, they build systems that are resilient, fair, and capable of responding to the evolving challenges of Europe’s labour markets.
The EU’s Role: Investing in What Works
This is more than a selection of projects – it is part of a strategic effort by the European Commission to invest in solutions that deliver tangible results. By scaling up successful local initiatives, the EU is ensuring that effective approaches do not remain isolated but become part of a wider European response to long-term unemployment. The outcomes of these projects will directly support individuals and communities, while also informing future EU employment and social inclusion policies. They underline a simple but important message: social innovation works – and when the EU invests in scaling it, the impact multiplies.
