The funding will support the new Workways+ Powys project, which will be delivered by Powys Council and PRIME Cymru. It will target out-of-work people aged 54 and over.
Workways+ Powys will run for three years and help people looking to start their own business; return to work or hoping to take part in volunteering opportunities to improve their skills and confidence.
It will offer support with jobseeking and interview skills; help with CV writing and the chance to gain vocational qualifications and take part in work experience placements.
Around 50 volunteer mentors will be recruited and trained to provide one-to-one mentoring to people looking to return to work in Powys as part of the project.
Finance Secretary Mark Drakeford said:
“EU funding is making a huge contribution to boosting the skills and prospects of people in Wales through projects like Workways, as well as apprenticeships, traineeships, graduate programmes and schemes to help young people pursue careers in STEM industries.
“I’m very pleased to announce this further investment, which will fund important services and new opportunities for people in Powys to get back into work and develop new careers.”
David Pugh, chief executive of PRIME Cymru said.
“We are delighted to be working with Powys Council on this truly innovative approach to supporting mature individuals who have so much to offer both Powys and the economy of Wales as a whole.
“This project will be one of the very first in Wales dedicated to supporting this age group back into economic activity.”