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Factsheet for measure DK-2024-1/3525 – measures in Denmark

Educational boost with 110% of the unemployment benefit rate

Uddannelsesløft med 110 pct. af dagpengesatsen

Country Denmark , applies nationwide
Time period Open ended, started on 01 January 2024
Context COVID-19, Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.)
Author Carsten Jørgensen (FAOS, University of Copenhagen), Louise Fabricius (Oxford Research) and Eurofound
Measure added 03 March 2024 (updated 13 March 2024)

Background information

The right to a vocational educational boost within areas with labour market shortages whilst receiving unemployment benefits at a rate of 110% is a measure targeted at unemployment benefit recipients who are 30 years or older and are either unskilled or have outdated qualifications.

The measure was first implemented temporarily from 2020 to 2022 following increased levels of unemployment after COVID-19. In 2023, the government spent DKK 200 million (€ 26.9 million) to continue the measure until it was made permanent. From 29 December 2023, the government implemented a permanent right for unemployment benefit recipients to be offered vocational training in areas with high labour demand as listed on the positive list.

Content of measure

Unemployment benefit recipients over the age of 30 who are either unskilled or have outdated qualifications are entitled to participate in the measure. The measure entitles them to receive 110% of their regular unemployment benefit if they choose to participate in a complete VET course leading to a formal qualification. Eligible courses are listed on a so-called 'Positive List' of VET courses where there is a high demand for labour. These include several courses related to the green transition and heating, such as electricians, refrigeration technician and plumbing with an energy focus. Participants are entitled to continue their education even if its duration extends beyond their unemployment benefit period. This allows the person to transition to other support measures, such as student grants (SU), alternative benefits, or through the adult apprenticeship scheme depending on their eligibility.

The measure is implemented in agreement between the individual and their Job Centre. While the participant is not obligated to accept the offer, once they have done so, they must both commence and participate in their chosen course. Throughout the course, participants are exempt from the obligation to actively seek employment and be available for assigned work according to the Law on Unemployment Insurance.

Course expenses are funded by a an earmarked allocation from the government at national level whereas municipal expenses are covered by their budget guarantee.

Use of measure

Since the measure was only made permanent at the start of 2024, there is not yet any information on uptake of the permanent measure. However, the temporary scheme which lasted from August 2020 until August 2022 found that more than 2,700 unskilled and skilled unemployed workers participated in the measure. A total of 3,920 individuals participated in upskilling initiatives (including this) in the same period of time compared to 1,276 between January 2018 and July 2020.

According to an evaluation of the temporary measure, nine out of ten surveyed participants stated that receiving 110% of their benefit rate was a precondition for them to participate in the measure.

Target groups

Workers Businesses Citizens
Unemployed
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Public employment service
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

No identified involvement.

Views and reactions

While social partners have not been involved in designing the measure, they have expressed satisfaction that it has been made permanent. According to Denmark's largest trade union, 3F, the measure has been highly successful both in terms of increasing employment among the unemployed as well as increasing the number of skilled workers in areas with high levels of labour demand. 3F do, however, criticise the government for uncertainties concerning the measure until is was made permanent, which they consider to have been unnecessary when all evidence point to its success.

Sources

  • 01 May 2021: Evaluation of the temporary right to upskilling and short courses (star.dk)
  • 04 October 2022: Historical number of upskilling measures after opportunity for 110% of unemployment benefits (bm.dk)
  • 21 March 2023: 3F: Positive signals for the unskilled unemployed (via.ritzau.dk)
  • 01 June 2023: The Positive List for right to upskilling with 110% of the unemployment benefit rate applicable from 1 July 2023 (www.star.dk)
  • 13 June 2023: Law on Amendment of the Act on an Active Employment Effort, the Act of Sickness Benefits, and the Maternity Leave Act ChatGPT Law on amendment of the Act on an active employment effort, the Act on sickness benefits, and the Maternity Leave Act ChatGPT Law on amendment of the Act on an active employment effort, the Act on sickness benefits, and the Maternity Leave Act ChatGPT Law on amendment of the Act on an active employment effort, the Act on sickness benefits, and the Maternity Leave Act ChatGPT Law on amendment of the Act on an active employment effort, the Act on sickness benefits, and the Maternity Leave Act ChatGPT Law on amendment of the Act on an active employment effort, the Act on sickness benefits, and the Maternity Leave Act ChatGPT Law on amendment of the Act on an active employment effort, the Act on sickness benefits, and the Maternity Leave Act (www.retsinformation.dk)
  • 19 December 2023: Permanent right to educational boost with 110% of unemployment benefits adopted (bm.dk)
  • 19 December 2023: Orientation concerning the adoption of the legislative proposal on permanent educational boost with an increased unemployment benefit rate of 110% (www.star.dk)
  • 11 January 2024: Right to upskilling within areas with labour shortage (www.star.dk)

Citation

Eurofound (2024), Educational boost with 110% of the unemployment benefit rate, measure DK-2024-1/3525 (measures in Denmark), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DK-2024-1_3525.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.