Country name: Denmark PES name: The Danish Agency for Labour Market and Recruitment Basic organisation model Objectives The objectives of the Danish Agency for Labour Market and Recruitment are to: increase labour supply; move people from public income support into employment or education; support and ensure that Denmark has a flexible, dynamic and efficient labour market; retain people in the Danish labour market and support the efforts to attract and recruit highly qualified professionals from outside Denmark. Targets The targets for 2013 and 2014 are as follows: decrease the number of young people without an education; improve and enhance the support for unemployed people; reduce the numbers granted disability pension; reduce the number of long-term unemployed; and strengthen cooperation between Job Centres and employers. Tasks The tasks of the Danish Agency for Labour Market and Recruitment include: analysing future skills needs; assisting the Ministry with policy development, legislative work, and developing reform proposals; delivering employment measures and initiatives nationally and locally with IT systems; developing evidence-based labour market information; collecting data in order to follow-up on implemented reforms; and providing services to foreign citizens (e.g. issuing residence permits). Structure, organisation levels and autonomy The Danish Agency for Labour Market and Recruitment was established 1 January 2014. The agency is a result of the merger of The National Labour Market Authority and The Danish Agency for Labour Retention and International Recruitment; it forms part of the Ministry of Employment. There are 94 job centres run by municipalities at the local level. Job centres perform the task of supporting the unemployed to access employment or education. At the regional level, there are four employment regions, which monitor the performance of job centres and the implementation of reforms and initiatives. At the national level, The Danish Agency for Labour Market and Recruitment develops strategic policy and employment initiatives to be implemented at the local level. 1
Relation to government As part of the Danish Ministry of Employment, the Danish Agency for Labour Market and Recruitment is subject to the control of Government. Partnerships Partner Objectives of partnership Partnership arrangements Municipalities. Manage job centres. Legal framework. Job centres. Private job guidance providers. Unemployment insurance Establish matches between job seekers and enterprises and general job-related guidance. Job centres can outsource parts of their services to private actors. Pay benefits and provide counselling to members. Legal framework. Commercial contractual agreements. Legal framework. Social partners. Provide advice about employment measures to the job centres through the local and regional employment councils. Legal framework. Companies. Potential employers for the unemployed. Individual arrangements and agreements. Educational institutions. Ordinary education, vocational education and training. Legal framework, individual contracts. Role of social partners Social partners are involved in the management, supervision and monitoring of the Danish Agency for Labour Market and Recruitment by law. They are members of the national employment council. The council provides advice to the minister about labour market conditions, on test projects and on proposals for new legislation. Additionally, social partners are represented in the local and regional employment councils as well. Network and information management The Danish Agency for Labour Market and Recruitment sets the national framework for coordination and management of the Employment Policies and initiatives including the framework for involving other stakeholders. Partnerships with other public and private stakeholders are managed through national, regional and local employment councils/boards and through partnership agreements. Internally and externally, the website www.jobindsats.dk, provides information for all stakeholders at all levels. Internally, there are regular performance meetings between the Employment Regions and the local job centres. Financing model Sources of financing The amount of finance for the PES has significantly increased since 2011; however there has been a slight reduction in 2014. PES Sources of Finances (million DKK) 2010 2011 2012 2013 2014 Total 56 922 60 396 60 460 64 621 62 904 Government & public funds 56 922 60 396 60 460 64 621 62 904 te: 2010-2013 is based on actual spend and 2014 forecast budget; municipalities bear a bit part of these costs but their expenses are reimbursed by the state. Annual expenditure Total PES annual expenditure has steadily increased between 2009 and 2013, with a slight reduction forecast in 2014. There has been a continued increase in unemployed benefits. 2
PES annual expenditure (million DKK) 2009 2010 2011 2012 2013 2014 Total PES expenditure 46 750 56 922 60 396 60 460 64 621 62 904 ALMPs 24 177 31 450 35 941 33 553 28 388 30 435 Unemployed benefits 21 337 24 846 23 842 26 074 35 480 31 894 Other 1 236 626 614 833 753 575 Human resources Number of staff and staff directly serving clients Total PES staff and staff directly serving clients 2013 2012 2011 Total PES staff serving clients Total PES staff 2010 0 2000 4000 6000 8000 10000 te: in 2013 a different, more accurate method to calculate the number of PES staff at local offices was implemented. Total PES staff at head office 388 Staff servicing clients at head office 0 Total PES staff at regional offices 198 Staff servicing clients at regional office 0 Total PES staff at local offices 8 750 Staff servicing clients at local offices 5 250 Integration of employment services and benefit provision Type of allowance/benefit Unemployment insurance. Cash benefit. Sickness benefit. Clients / customers Responsibilities Registration Payments Employment services for recipients Registration with the PES/job centre and membership of an fund is required. Registration with the PES/job centre is required. Registration with the PES/job centre is required. The unemployment insurance fund/mainly funded by the state. The municipality/mainly refunded by the state. The municipality/refunded by the state. Job centres can choose to outsource some services to private providers. Job centres can choose to outsource some services to private providers. 3
Jobseekers Jobseeker clients by main groups recognised 2013 2012 2011 2010 Total number of registered unemployed Total number of registered jobseekers 2009 0 50000 100000 150000 200000 250000 300000 te: data for 2013 is not yet available. Jobseekers per national category (type of benefit) 2011 2012 2013 Total number of full time people seeking jobs 159 521 161 464 153 030 Unemployed recipients of unemployment benefits 51 129 51 129 35 548 Unemployed recipients of cash benefits 108 392 118 722 117 482 te: the numbers are full time persons, Source: Statistics Denmark. The national definition of unemployed is: unemployed people who are available for the labour market and actively seeking jobs and who have no reduction in job capacity. Employers The Danish Agency for Labour Market and Recruitment does not categorise employers. Types and methods of service provision Services for jobseekers What services do you provide? First contact and registration are guaranteed to all jobseekers. An individual plan explaining necessary actions to find suitable employment. Individual monitoring. What target group is the service for? How do you deliver the service? Web-based jobvacancy and CV database. Interview. Job-seeking courses. Vocational training. Personal interviews are conducted with jobseekers to support and monitor active Do you work with partner organisations to deliver this service? In cooperation with In cooperation with In cooperation with Number of people reached N/A for 2013. 960 000 in 2012. N/A N/A 4
engagement in job seeking and/or ALMP activities. In 2013 an Expert Committee investigated all ALMP measures. A database for the evaluation of effectiveness of different services can be found at internet: https://www.jobeffekter.dk/jobeffekter.aspx (in Danish). Services for employers What services do you provide? Employers can commonly access web-based services such as job-vacancies and the CV data base. Support and guidance on recruitment Guidance on access to subsidies. What target group is the service for? How do you deliver the service? Each job centre has the right to decide on its own service provision. Each job centre has the right to decide on its own service provision. Each job centre has the right to decide on its own service provision. The services above are all delivered in-house. The Expert Committee has published an overview of evaluations of the cooperation between job centres and companies. This can be found at internet: http://bm.dk/~/media/bem/files/dokumenter/pressemeddelelser/2014/carsten%20koch/carsten%20 Koch%20udvalget%20WEB%20pdf.ashx (in Danish). Job vacancies, market share and performance Collecting information on job vacancies The Danish Agency for Labour Market and Recruitment receives information on job vacancies from the public website for all jobseekers and employers in Denmark (can be found at internet: www.jobnet.dk). On the website, employers can post their vacancies or ask for help for filling a vacancy from the local job centre. The website also searches all online job websites on a daily basis and publishes them. The public job centres are municipal and their methods of gathering job vacancies vary. They rely on the employers volunteering information on vacancies. But on a smaller scale, they also contact employers directly, by phone and make campaigns and job fairs to gather vacancies. This takes place on a daily basis. Some job centres have agreements with the companies concerning recruitment of staff. New vacancies 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 2009 2010 2011 2012 2013 PES market share data is available for the estimated market share of the PES or the number of people leaving the PES unemployment records as a share of the registered unemployed. Matching supply and demand 5
The Danish Agency for Labour Market and Recruitment routinely monitors (at an overall level) how the characteristics of current vacancies (e.g. required skills, levels of education needed, sectors, occupations, etc.) compare to the qualifications and capacity of current jobseekers. They use an online tool, the Labour Market Balance, which continually monitors the job opportunities on the labour market and presents them at a regional level. The job opportunities are categorised as excellent job opportunities, job opportunities and less good job opportunities. The Danish Agency for Labour Market and Recruitment also uses labour market intelligence to guide the direction of future training needs, using Labour Market Balance. Active Labour Market Policies LMP services (category 1) Ref. Name of measure Brief description Delivered in house/by external providers Does this service, or some of its components, specifically target youth? 1 Counselling service. Face-to-face and telephone interviews including a CV interview. Educational courses. Group coaching sessions. Job centre (in house) and, but available to 2 Skills development. Counselling and skill qualifications. Job centre (in house) and, but available to 3 Early activation. Insured unemployed aged over 30 years must begin activation after 9 months of unemployment; insured unemployed aged under 30 years begins activation after 13 weeks of unemployment. Job centre (in house). Yes 4 Cash Benefit Reforms (from 1 January 2014). The aim is for young people (aged under 30 years) receiving cash benefits and not having an education is to take an education. Cash benefit corresponding to the State education grant (SU) is available to support this. Job centre (in house). Yes, parts are youth targeted. LMP measures (category 2-7) Ref. Name of measure Cat. Brief description Delivered in house/by external providers Does this service, or some of its components, specifically target youth? 1 Job training. 2 Four week programme where the jobseeker continues his unemployment insurance benefit while doing an internship In house., but available to 6
at a company to develop skills. 2 Job rotation. 3 Companies can send workers for skills upgrading and in the meantime hire an unemployed person with a public subsidy. In house., but available to 3 Wage subsidy job. 4 Public and private companies can get wage subsidy to hire an unemployed for a period of 6 to 12 months. In house., but available to 4 Six weeks of education by own choice. 2 After four months of unemployment, jobseekers can choose a six week educational course to upgrade their skills. In-house., but available to Target time for different phases of intervention Each year, the Minister of Employment sets different targets that are based on the current employment situation. In recent years there has been a greater focus on youth unemployment and better contact with companies. The achievements on each target are calculated every month. The achievements on local, regional and national levels are followed closely. Supporting young people - Youth Guarantee The Youth Guarantee was introduced in Denmark in 1995. Policy context The Danish Government adopted a fundamental change to the Cash Benefit System in 2013, which has been implemented from 1 January 2014. As part of the Cash Benefit Reform, people aged under 30 years without an education now receive education benefit (former cash benefit) with the primary goal ordinary education. They now have a right to an active offer, to support that start and completion of an education programme no later than one month from their first interview. With the reform follows a strong focus on basic skills of the young people. The job centre is required to assess the basic skills of young people and ensure support is provided to achieve these skills to a primary school level. Responsibility for the Youth Guarantee The Danish Agency for Labour Market and Recruitment is in charge of establishing and managing the Youth Guarantee scheme. PES and the implementation of the Youth Guarantee The Danish Agency for Labour Market and Recruitment is responsible for ensuring that unemployed people aged below 30 years (who receive cash or education benefits or do not have an ordinary education) have a first interview in the job centre within one week of contacting the job centre; it is also responsible for ensuring they receive an active offer within one month of a first interview in order to support progression into ordinary education or employment. The PES is also required to provide young people with an ordinary education an active offer towards employment within 13 weeks. Young people who receive unemployment benefits (through an fund) are entitled to a first interview in the job centre within one month after contacting the jobcentre. In all cases the job centre should provide an active offer, which is individually designed for the young person. Reaching out to young people not in education, employment or training (NEETs) A partnership-based approach has been implemented, with additional resources used for increasing cooperation between Youth Guidance Centres, educational institutions, job centres, businesses and the The Youth Guidance Centres have the responsibility of ensuring that young people (aged under 25 years) in the NEET group, are detected and receive support and guidance. A national Youth Database (Ungebasen) exists to support this, which provides a register of all young people aged up to 25 years (soon to be extended to 30 years). The database enables job centres to access information about the educational and occupational status of young people. Quality of guarantee The overall quality standard for offers to the unemployed is focused on supporting progression to ordinary employment and/or the achievement of ordinary education. Services are required to be personalised and tailored to the individual. These standards are built-in to Danish legislation for the unemployed. Service quality is also measured by monitoring job centre implementation of services. Some job centers have also implemented internal follow-up mechanisms to demonstrate how active services result in positive outcomes. Service provision is also being evaluated through projects 7
established by parliament, which will inform future delivery. Partnerships Type of partnership Partnerships to ensure that young people have full information and support available. Partnerships aimed at increasing employment, apprenticeship and traineeship opportunities. Partnerships aimed at supporting transitions from unemployment, inactivity or education into work. In place? Y Y Y Details The PES is cooperating with Youth Guidance Centres, The Danish Vocational Education and Training system, production schools and education institutions in general. The PES is cooperating with enterprises, employers and social partners. As a result of the Cash Benefit reforms, the PES is now obliged to support young people to achieve ordinary education. This has been implemented by strengthening cooperation between job centres and educational institutions. In addition, the PES now has the opportunity to offer young people mentoring support at the start of ordinary education up until employment has been achieved. Funds allocated to the Youth Guarantee There are no particular funds allocated for the Danish Youth Guarantee only. The funding of Youth effort is an integrated part of the funds for Employment, Education and Training in Denmark. Activation measures for young people, within the context of the Youth Guarantee Types of intervention Brief description Is it new? Personalised guidance services. Individual action planning. Outreach Strategies: Communication strategies to engage with hard to reach groups of young people. Work-based integration. School-based integration. Subsidies paid to employers. Subsidies paid to employees or trainees. young people (aged under 30 years) have the right to personalised support to achieve employment and/or ordinary education. Unemployed people have the right to an individually designed job plan/education plan, which the PES is responsible for. The national Youth Database - a register of all young people aged up to 25 years (soon to be extended to 30 years) provides information and guidance as well as information about the education and occupation status of young people for the PES. Responsibility for contacting young people and providing information and guidance is the shared responsibility of job centres and Youth Guidance Centres. Wage subsidies for employment with public or private enterprises, enterprise Training, job rotation and graduate trainees (implemented in 2012 and continues until March 2014). A partnership-based approach; close cooperation between education institutions, Youth Guidance Centres and the PES. Wage subsidies for employers DKK 73 per hour for private enterprises, DKK 141 per hour for public enterprises. The benefit obtained in a wage subsidy position corresponds to the benefit received from the PES. 8