The   Danish Labour Market and the Seniors,  Labour Market Policy and ´soft´ Initiatives September 2008, Senior Adviser Le...
The Danish flexicurity triangle Flexible labour market Unem-ployment benefits Active LMP   Low employment protection: Easy...
Key figures 2007-08 <ul><li>Population: 5,4 mill (16-66: 3,7 mill), Labour force: 2,9 mill </li></ul><ul><li>Participation...
Labour market challenges: Labour shortage – short and long run  <ul><li>Where are the options (groups with surplus unemplo...
Ageing and employment policy. Key factors - intertwined <ul><li>Labour market incentives – legislation </li></ul><ul><ul><...
Welfare Reform 2006 <ul><li>Voluntary Early Retirement Pay :  Age will be lifted from 60 to 62 years 2019-2022 </li></ul><...
Unemployment insurance and activation – Welfare Reform 2006 <ul><li>Negative incentives (mainstreaming) </li></ul><ul><ul>...
Prevention Fund – Welfare Reform 2006 <ul><li>Prevent attrition in the labour market </li></ul><ul><li>Activities to preve...
New measures 2008 - Jobplan <ul><li>Strengthened economic incentives: </li></ul><ul><ul><li>Easing the income-testing of o...
`Soft Initiatives´ <ul><li>Free consultancy assistance to employers </li></ul><ul><li>Funding local development projects <...
Employment Rate 1997 and 2006, age groups
Development of employment, age groups Employment rate 55-59: 75,8 pct. in 2006
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L. Hansen Ams - eSangathan International Conference

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  • L. Hansen Ams - eSangathan International Conference

    1. 1. The Danish Labour Market and the Seniors, Labour Market Policy and ´soft´ Initiatives September 2008, Senior Adviser Leif Christian Hansen, The National Labour Market Authority, www.ams.dk , www.bm.dk
    2. 2. The Danish flexicurity triangle Flexible labour market Unem-ployment benefits Active LMP   Low employment protection: Easy to hire and fire High job and worker-mobility Rapid structural change: 800.000 job openings, 250.000 jobs disappear, >250.000 new jobs 420.000 unemployment spells Income security 4 years duration incl. activation, High compensation for low-wage groups (90%), average replacement rate app. 65% Employment security Active labour market policy, Activation, Right and duty, Individual Job Plan
    3. 3. Key figures 2007-08 <ul><li>Population: 5,4 mill (16-66: 3,7 mill), Labour force: 2,9 mill </li></ul><ul><li>Participation rate: 78 % (women 73 %, men 80%, 55-59 years, 78 %, 60-66 years 40 %) </li></ul><ul><li>Unemployment July 2008 44,000 – 1,6 %, Women 1,7 %, 1,6 - 25 years 1,2 %, 50-66 years 1,5 % </li></ul><ul><li>Persons in activation 39,500 – 1,4 % </li></ul><ul><li>150.000 absence due to illness – 5,0 % </li></ul><ul><li>Pension age: 65/Average retirement age: 62 </li></ul><ul><li>Members of Unemployment Insurance Funds 80-85 % </li></ul><ul><li>Unionization rate: 75-80 % </li></ul><ul><li>Collective agreement coverage: 70-75 % </li></ul><ul><li>GNP 1,650,000 million DKK (1 EURO = 7,45 DKK) </li></ul><ul><li>GNP growth 3,2 %, Inflation 1,1 % </li></ul><ul><li>Labour market policy budget 2008: 74,000 million DKK (25 % active, 75 % passive) </li></ul>
    4. 4. Labour market challenges: Labour shortage – short and long run <ul><li>Where are the options (groups with surplus unemployment and lower rate of participation): </li></ul><ul><ul><li>” Paradox” unemployed – better matchning </li></ul></ul><ul><ul><li>Young persons – earlier study completion </li></ul></ul><ul><ul><li>Older workers and retired workers </li></ul></ul><ul><ul><li>Marginalised unemployed (transfer recipients) </li></ul></ul><ul><ul><li>Immigrants and descendants (2 and 3 generation) </li></ul></ul><ul><ul><li>High absence due to illness </li></ul></ul><ul><ul><li>Disability pension </li></ul></ul><ul><ul><li>International recruitment ( www.workindenmark.dk ) </li></ul></ul><ul><ul><ul><li>3 recruitment service centers </li></ul></ul></ul><ul><ul><ul><li>Campaigns etc . </li></ul></ul></ul>
    5. 5. Ageing and employment policy. Key factors - intertwined <ul><li>Labour market incentives – legislation </li></ul><ul><ul><li>Retirement Schemes </li></ul></ul><ul><ul><li>Unemployment Insurance </li></ul></ul><ul><ul><li>Activation Measures </li></ul></ul><ul><ul><li>Senior jobs in the municipalities </li></ul></ul><ul><ul><li>Wage subsidy scheme in private sector </li></ul></ul><ul><ul><li>Vocational Training </li></ul></ul><ul><ul><li>Prevention of Attrition </li></ul></ul><ul><li>´Soft´ initiatives </li></ul><ul><li>Attitudes concerning age and work </li></ul><ul><ul><li>Mainstreaming! </li></ul></ul>
    6. 6. Welfare Reform 2006 <ul><li>Voluntary Early Retirement Pay : Age will be lifted from 60 to 62 years 2019-2022 </li></ul><ul><li>Indexation to mean life expectancy of 60 years old from 2025 </li></ul><ul><li>Old Age Pension : Age will be lifted from 65 to 67 years 2024-2027 </li></ul><ul><li>Indexation to mean life expectancy from 2030 </li></ul>
    7. 7. Unemployment insurance and activation – Welfare Reform 2006 <ul><li>Negative incentives (mainstreaming) </li></ul><ul><ul><li>Abolishing prolonged unemployment benefits for 55-59 years </li></ul></ul><ul><ul><li>58-59 year old unemployed have to be activated </li></ul></ul><ul><li>Positive incentives (transition period) </li></ul><ul><ul><li>Seniorjob: 55-59 losing their right to unemployment subsiby are entitled to a job in the municipality </li></ul></ul><ul><ul><li>Unemployed 55+ are entitled to a wage subsidy if they find a job in a private enterprise </li></ul></ul>
    8. 8. Prevention Fund – Welfare Reform 2006 <ul><li>Prevent attrition in the labour market </li></ul><ul><li>Activities to prevent premature withdrawal </li></ul><ul><li>DKK 3 billion, Euro 400 million </li></ul><ul><li>Activities </li></ul><ul><ul><li>Prevent routines and functions leading to attrition </li></ul></ul><ul><ul><li>Develop new routines for prevention </li></ul></ul><ul><ul><li>Better rehabilitation of sick and disabled </li></ul></ul><ul><ul><li>Increase awareness about risks connected to smoking, alcohol, physical inactivity and obesity </li></ul></ul><ul><li>The Social Partners involved </li></ul>
    9. 9. New measures 2008 - Jobplan <ul><li>Strengthened economic incentives: </li></ul><ul><ul><li>Easing the income-testing of old age pension for income from work – incentive to work as pensioner </li></ul></ul><ul><ul><li>A tax-reduction on income from work amounting approx. 13.400 EURO for 64 year olds - incentive to stay on the labour market </li></ul></ul>
    10. 10. `Soft Initiatives´ <ul><li>Free consultancy assistance to employers </li></ul><ul><li>Funding local development projects </li></ul><ul><li>Local senior networks for unemployed </li></ul><ul><li>Campaigns and awards </li></ul><ul><li>Think Tank </li></ul><ul><li>Best practice and knowledge, Individual senior contracts (www.seniorpraksis.dk) </li></ul>
    11. 11. Employment Rate 1997 and 2006, age groups
    12. 12. Development of employment, age groups Employment rate 55-59: 75,8 pct. in 2006

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