Observation (CEACR) - adopted 1999, published 88th ILC session (2000)

Employment Policy Convention, 1964 (No. 122) - Denmark (Ratification: 1970)

The Committee notes the information contained in the Government's report for the period ending September 1998, as well as more recent sources of information. During the period from 1994 to 1998, Denmark has seen substantial economic growth and a decrease in unemployment. As of April 1999 the unemployment rate was 4.7 per cent, according to Eurostat, down from over 12 per cent in 1993. The Government also reports a substantial drop in the long-term unemployment rate from 1994 to 1996.

The Government states that its economic strategy has been to combine growth-promoting macroeconomic policy with structural policy measures to ensure a well-functioning labour market. This includes combining growth with low inflation, balance-of-payments surplus and a gradual reduction of public debts.

The Active Labour Market Policy Act contains provisions for: placement services, guidance and information; various education and training programmes; a bonus scheme for employers who permanently hire workers employed in subsidized work; and a job rotation scheme in which employers are offered subsidies for hiring an unemployed person as a substitute for an employee on training or child-care leave. The Committee notes with interest these various schemes and their contribution in helping significantly to achieve the objectives of the Convention. It is addressing a request directly to the Government on some particular points.

In addition, the Government has established public sector pool jobs, lasting up to three years, in high priority areas such as environmental protection and health care, for people who have been unemployed for at least two out of the last three years. In this respect, the Committee notes the conclusions, approved by the ILO Governing Body, of the Committee set up to examine the representation submitted by Dansk Magisterforening, alleging non-observance of the Convention made under article 24 of the ILO Constitution. In its conclusions, the Committee had considered that job offer programmes for unemployed persons fall within the framework of measures required by Article 2 of the Convention for purposes of achieving the objectives set forth in Article 1, provided that such programmes are not used to fill permanent posts.

The Committee notes that unemployed persons under 25 years of age who have not completed a formal education or training programme are required to enter an education or training programme for a minimum of 18 months. The Committee requests further information on the number of youth undergoing such training and the subsequent rate of job placement.

The Committee notes with interest the decline in unemployment amongst older workers despite the increase in the participation rate for this age group. The Committee would appreciate further details on the policies underlying this change.

Lastly, the Committee notes the proposal to amend the Act, and to reform the vocational training and supplementary training system (VEU) which is due for completion in spring 1999. The Committee would appreciate further information on the content of any reforms adopted and on the role of the social partners in the reform process.