Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
Harnessing an Entrepreneurial Spirit for
Inclusive Local Employment
Taking Forward the Local in Lisbon
25 April 2008
The Danish Employment Policy
Jan Hendeliowitz
Director
Employment Region Copenhagen & Zealand
The National Labour Market Authority
Denmark
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
Facts about Denmark
• Total population
5.4 million
• Work force
2.9 million
• Employed people
2.8 million
• Employment rate
76.8 %
• Unemployment rate
2.1 %
• Youth unemployment
1.9 %
source: www.jobindsats.dk (Statistics Denmark)
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
Employment Regions in Denmark
North Jutland
Employment Region
0.6 million
Central Jutland
Employment Region
1.2 million
South Denmark
Employment Region
1.2 million
Copenhagen and Zealand
Employment Region
2.4 million
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
Unemployment rates in Denmark, EU and OECD
1991-2007
12,0
10,0
Procent
8,0
6,0
4,0
2,0
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
0,0
Denmark
EU
OECD
Source: OECD
080425-Brussels
Youth unemployment
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
Unemployment rates in the 15-30 age range in Denmark, EU-15 and OECD,
1991-2006
20
Per cent
16
12
8
4
0
91
9
1
93
9
1
95
9
1
97
9
1
Denmark
99
9
1
EU-15
01
0
2
03
0
2
05
0
2
OECD
Source: OECD
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
The Danish Flexicurity Model
Limited degree of employment protection and high job mobility
- 800,000 or circa 30 % of all Danish wage earners change their jobs each year
- 20% of the work force experiences unemployment each year
The main axis of
the flexicurity
model
Flexible
labour
market
The qualification
effect of the LMP
Generous
welfare
schemes
Active
LMP
Motivational
effects of LMP
High compensation rates
- 3000 USD a month before tax
Activation is both a right and an obligation
- In Denmark 1.7 % of GDP is spent on active
measures and 2.5 % on passive measures
080425-Brussels
Expenditure on labour market policy
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
Denmark
Belgium
Netherlands
Germany
Finland
Sweden
France
Spain
Norway
Ireland
Italy
Luxembourg
Australia
Canada
United Kingdom
Japan
Czech Republic
United States
Korea
0
1
2
3
4
5
Expenditure as share of GDP (%)
Active measures
Source: OECD – Employment outlook 2007
Passive measures
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
Perception of
job security & satisfaction
Job security
Job satisfaction
Scale from 1 to 10, from low to high job security
Percentage of those employed who are
satisfied or very satisfied with their jobs
10
100
8
80
6
60
4
40
2
20
0
0
Source: European Opinion Research Group EEIG (2001)
Source: European Foundation for the Improvement of Living
and Working Conditions (2006)
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
The main elements of the
flexicurity model
• A flexible labour market with low employment protection and
high job mobility
• A generous welfare system with high income security
• An active labour market policy
• Collective agreements between the parties in the labour market
• Dynamic legislative process – regular review and revision
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
Regime
Regime A
Northern European regime
Regime B
Anglo-Saxon regime
Characteristics of the labour
market policies of the four regimes
Policies
• High compensation rates
• Strict requirements concerning availability for work
• Active LMPs
• Low to average employment protection
• Low compensation rates
• Few formal requirements concerning availability for
work
• Varying degree of active LMPs
• Limited employment protection
Countries
Denmark
Netherlands
Sweden
Ireland
United Kingdom
Regime C
Central European Regime
• Varying compensation rates
• Varying requirements concerning availability for work
• Passive LMPs
• Average to high employment protection
Austria
Belgium
Finland
Germany
Regime D
Southern European regime
• Average compensation rates
• Strict requirements concerning availability for work
Passive LMPs
• High employment protection
France
Italy
Spain
Portugal
Greece
Source: Medium Term Economic Outlook, Danish Ministry of Finance, 2004:12.
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
Employment/population ratios, labour force
participation rates and unemployment rates 2006
Countries ordered by regime
Employment/population ratio
Labour force participation rate
Unemployment rate
Regime A:
Denmark
76.9
80.1
4.0
Sweden
74.5
80.2
7.1
Netherlands
72.4
75.7
4.4
United Kingdom
72.5
76.7
5.4
United States
72.0
75.5
4.7
Ireland
68.1
71.3
4.4
Austria
72,2
75.9
5.0
Belgium
60,4
65.9
8.4
Finland
68.9
74.7
7.8
Germany
67.2
75.0
10.4
France
62.3
69.1
9.8
Italy
58.4
62.7
6.9
Spain
65.7
71.9
8.6
Portugal
67.9
73.9
8.1
Korea
63.8
66.2
3.6
OECD Europe
62.5
68.3
Total OECD
66.1
70.5
Regime B:
Regime C:
Regime D:
Not categorised by regime
8.5
080425-Brussels
6.3
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
Total hours worked annually per
person of working age 2005
Source: OECD 2007
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
The political and institutional
set-up of the Employment Service
Minister for Employment
National level
The National
Employment
Council
Sets the focus areas and objectives of the employment effort
National Labour Market Authority
Contract
4 Employment Regions
Regional operational units
Responsible for supervision of the labour market etc.
Supervision of effects and outcomes etc., including
follow-up of the Minister's objectives
Regional level
Approves the States part of the
performance audit and the employment
plan
4 regional
employment
councils
Supervision and follow-up of
the effects and outcomes of the job centres’
total employment effort
77 job centres
14 pilot job centres
State service
Local level
Municipal service
91 local employment
councils
Municipal service
The municipal councils approve the performance audit and the employment plan for
their own job centres. In each job centre the state and the municipality share the
responsibility for the employment effort. In the pilot job centres the municipal
council alone approves the performance audit and the employment plan.
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
The planning and monitoring process
in Job Centres
Employment plan
The final employment
plan is sent to the
Regional Employment
Council
Follow up and
supervision
Regular follow-up of
the job centres
performance by the
employment regions
Analysis of the labour
market situation
Analysis reports compiled by the
Employment Regions and the
Regional Employment Councils
National targets
The Minister announces
the national targets and
focus areas for next year
October December
Jan March
Juli September
April June
Regional targets
The targets are specified
in a contract between the
Minister, the Employment
Regions and the Regional
Employment Councils
Local targets
The job centres involve the
Local Employment Councils
in the process of setting the
local targets for the coming
year
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
The national performance targets for 2008 set
by the Minister of Employment
Performance target 1:
•
Decrease in the number of unemployed people over 3 months.
Performance target 2:
•
Focus on people who have been unemployed for more than a year, as well
as the targets set under the national initiative known as ”A New Chance For
Everyone”. These targets are:
1) 25 per cent will enter employment or training
2) The target group will be self-supporting 15 per cent of the time
3) The target group will be participating in an activation scheme 40
per cent of the time.
Performance target 3:
•
Decrease in the number of unemployed young people (i.e. those under 30)
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
Follow-up procedures
• The Employment Regions closely follow up the performance outcomes
being pursued in the job centres
• Quarterly analysis reports are compiled by the Employment Regions on the
basis of the overall national and regional targets
• The reports contain an assessment of the effects and outcomes achieved by
the respective Employment Regions, plus a benchmarking of the individual
job centres
• Dialogue meetings concerning outcomes are held with the Job Centres
twice a year or more
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
Example of benchmarking of Job Centres
The proportion of the target group of long-term unemployed on social welfare ”A
New Chance for Everyone” that is self-supporting, 3rd quarter of 2007
45,0%
40,0%
35,0%
30,0%
25,0%
20,0%
15,0%
9,7%
10,0%
0,0%
Rødovre
København
Hillerød
Herlev
Frederiksberg
Lejre
Høje-Taastrup
Glostrup
Køge
Lolland
Brøndby
Bornholm
Helsingør
Ballerup
Roskilde
Holbæk
Vallensbæk
Fredensborg
Odsherred
Gladsaxe
Gentofte
Allerød
Hvidovre
LyngbyHalsnæs
Tårnby
Guldborgsund
Albertslund
Slagelse
Greve
Vordingborg
Furesø
Faxe
Kalundborg
Hørsholm
Ringsted
Solrød
Gribskov
Frederikssund
Rudersdal
Stevns
Næstved
Egedal
Sorø
Østdanmark
5,0%
Source: Effects of employment efforts in the Eastern Denmark Employment Region, 3rd quarter of 2007
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
Example of benchmarking of Job Centres
The development in the number of unemployed young people in the period
September 2006 – September 2007
20,0%
10,0%
0,0%
-10,0%
-16,6%
-20,0%
-40,0%
Stevns
Vallensbæk
Tårnby
Odsherred
Gribskov
Hillerød
Slagelse
Næstved
Vordingborg
Rudersdal
Høje-Taastrup
Gladsaxe
Lejre
Bornholm
Lolland
Greve
Kalundborg
Herlev
Helsingør
Holbæk
Faxe
Fredensborg
Brøndby
Guldborgsund
Ballerup
Gentofte
Furesø
Frederikssund
Ringsted
København
Allerød
Roskilde
Glostrup
Rødovre
Frederiksberg
Hvidovre
Køge
Lyng.-Taarb.
Albertslund
Solrød
Hørsholm
Egedal
Sorø
Halsnæs
Østdanmark
-30,0%
Source: Effects of employment efforts in the Eastern Denmark Employment Region, 3rd quarter of 2007
080425-Brussels
Employment Region
Copenhagen & Zealand
The Danish National Labour
Market Authority
In summary:
The Job Centres
• Have a high degree of freedom in planning and implementing their
employment initiatives and activities
• Are obliged to focus on outcomes, and to achieve results which contribute
to the realization of the national and regional outcome performance
The Employment Regions
• Are responsible for ensuring coherence between the local initiatives and the
National Employment Policies
• Follow up the performance outcomes of the employment measures being
pursued in the job centres
The Minister of Employment
• Sets the national targets and focus areas
080425-Brussels