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Key figures - Denmark

Explore how Denmark tackles youth unemployment with an emphasis on education, tailored interventions, and social safety nets. Learn about the Cash Benefit Reform, activation measures, and the positive impact of mentoring. Discover how economic incentives and VET initiatives bridge the gap to education. Delve into the effectiveness of these strategies in integrating young individuals into the labor market.

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Key figures - Denmark

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  1. Approaching youth unemployment in Denmark: Focus on education13 May 2015Ida SynnestvedtHead of SectionMinistry of Employment - Denmark

  2. Key figures - Denmark Population • 5.7 million • Labour force: 2.9 million Unemployment (December 2014) All age groups • Benefit recipients in total: 246,000 • Ready for a job: 129,00 Age 16-29 • Benefit recipients in total: 72,800 • Ready for a job or an education: 30,300

  3. Unemployment rate development 2008-14

  4. Ministry of Employment 27 unemployment insurance funds Danish Agency for Labour Market and Recruitment - 3 decentralized labour market offices Government 98 Municipalities 94 integrated job centres for all job seekers - Full responsibility of the municipality 98 social welfare offices Youth Guidance Centres December 19, 2019

  5. The Danish approach to youth unemployment - keywords • Active labour market policies • Early intervention / activation and individually tailored efforts • Focus on education and upgrading of skills and qualifications • Social safety net / income security (cash benefits and unemployment insurance) • Since 2014: An explicit focus on young persons under the age of 30

  6. The cash benefit reform • Entry into force on 1 January 2014 • Explicit focus on young people by dividing unemployed persons into 2 categories: • Unemployed under the age of 30 without an ordinary education • Unemployed above the age of 30 (and those under 30 with an education)

  7. Education: The key to labour market integration • Young persons under the age of 30 receive an education offer (compulsory to accept) • As not all young persons have the same prerequisites, they are divided into three groups: • Clearly ready for education • Ready for education within one year • Ready for activation (i.e. not ready for education within one year)

  8. Final visitation after 3 months Thorough visitation 1. Contact with the job centre 1. Interview after one week A. Education offer Ready for education B. reading, writing & calculating test. Upgrading of skills if necessary. Ready for activation C. Initiative Continuous follow up Clearly ready for education In special circumstances ready for activation

  9. Activation measures – young persons ready for education within one year • Upgrading of skills and qualifications • Short internships in educational centres • Mentoring • Practical work training in enterprises

  10. Activation measures – young persons ready for activation • Coordinating caseworker at the job centre • Close and regular follow-up • Upgrading of skills and qualifications • Short internships at educational centres • Mentoring • Practical work training in enterprises

  11. Positive effects from mentoring • Effect evaluation based on an experiment in 13 municipalities in 2012-2013 • 2,593 young persons ready for activation* participated • Half the participants met with a mentor 1,5 hours per week, the other half did not • After one year, 16% of the participants with mentor support had enrolled in an educational programme • Only 12% of the participants without mentor support had enrolled in an educational programme * Before the entry into force of the cash benefit reform in 2014, the term ”ready for activation” did not exist, the equivalent was ”match group 2”.

  12. Building bridge to education • Cross-sectoral initiative: The young unemployed persons receive activation offers at a VET institution • Upgrading of basic skills in reading, writing and calculating • Enterprise training • Short internships at different VET educations • Mentor for all young persons through the entire period • Effect evaluation shows positive results

  13. Economic incentives to begin an education • The cash benefit reform has changed the benefit system for young persons without an ordinary education. • Benefits for this group are called ”education benefits” • Benefits reduced to the same level as the state educational grant (SU) • Cash benefits:1,450 Euros - education benefits:800 Euros • Young persons ready for activation entitled to a supplement raising the amount to the equivalent of cash benefits

  14. Is the reform working?

  15. Thank you very much!

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