Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure DK-2024-1/3525 – measures in Denmark
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) |
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is a measure targeted at unemployment benefit recipients who are 30 years or older and are either unskilled or have outdated qualifications.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.
Unemployment benefit recipients over the age of 30 who are either unskilled or have outdated qualifications are entitled to participate in the measure.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.
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.
Workers | Businesses | Citizens |
---|---|---|
Unemployed
|
Does not apply to businesses | Does not apply to citizens |
Actors | Funding |
---|---|
National government
Public employment service |
National funds
|
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 identified involvement.
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.
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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