Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

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

1. Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee notes the Government’s detailed report received in November 2007 including replies to the 2005 direct request. The Government indicates that the labour market is characterized by high employment and low unemployment. More specifically, in 2007, unemployment fell below 100,000 persons, which corresponds to an unemployment rate of about 3.5 per cent, the lowest level in more than 30 years. Figures from the Danish workforce survey (AKU) shows that the number in employment has been increasing slightly since 2003, from 2.66 million in the first quarter of 2003 to 2.81 million in the fourth quarter of 2006. Accordingly, the overall employment rate has increased from 75.9 per cent in 2005 to 77.4 per cent in 2006. Between 2004 and 2007, in order to increase labour supply, the Government launched labour market policy initiatives to encourage older workers to stay longer in the labour market, help the unemployed re-enter the labour market as quickly as possible and ensure that the unemployed are available for work. In June 2006, the Government also implemented an agreement on the reform of the Danish welfare system. The Welfare Agreement, which continues the revision of labour market policy, provides opportunities for increasing employment in the short and long term. This also applies to the long-term unemployed and to individuals otherwise having difficulties gaining a foothold in the labour market, such as persons with insufficient qualifications, including some immigrants and their descendants. The Committee notes with interest the performance of active employment measures implemented and the reduction of unemployment achieved. It asks the Government to provide information on the results of labour market initiatives and how the reform of the welfare system will translate into productive and lasting employment opportunities for the unemployed, the long-term unemployed and other categories of vulnerable workers.

2. Means to promote employment of older workers. The Government indicates that, although the unemployment rate of older persons has been falling, unemployment rates remain above average for persons aged over 55 compared to other age groups. The Committee notes the initiatives taken with a view to improving the employment rate for persons over 55, such as initiatives to retain older workers in employment, so as to stave off early retirement, and initiatives to provide jobs to more unemployed older persons. The Welfare Agreement introduced new opportunities for unemployed older persons such as subsidizing wages in private sector enterprises for unemployed persons over 55 years who have been unemployed for more than 12 months and employment in a senior job in a municipality where an older worker would lose the right to unemployment benefits. These measures came into force on 1 January 2008. The Committee asks the Government to provide detailed information on the impact of such initiatives designed to encourage and support employment levels of older workers.

3. Educational and training policies. The Government indicates in its report that it has initiated extensive educational reforms which will contribute to maintaining growth and welfare in the years ahead and to achieving the joint EU objectives of the Lisbon strategy. Denmark is one of the countries with the highest percentage of people participating in adult and continuing education and training, on-the-job competence development and liberal education activities. Public as well as private investments in the development of new skills and competences rank among the highest in Europe. A very significant part of the total learning and competence development takes place in connection with the job. Thus, it is a well-established practice that the social partners make agreements about employees’ competence development and educational planning in enterprises through collective agreements. The social partners in the private sector entered into an agreement on 1 May 2007 about the establishment of special competence funds. The Government indicates in its report that special difficulties have been encountered with regard to the matching of demand and supply of work placements and applicants. There is an imbalance in young people’s wishes for work placements and reducing this mismatch through guidance is a special challenge. Also, the system shows inertia in terms of quickly meeting the education and training requirements of new industries and adjusting education programmes in line with the development of job functions in enterprises. The Committee asks the Government to provide details of the number of persons participating in educational and training programmes, how it plans to reduce the mismatch of labour supply and demand, and how it plans to overcome other difficulties that have been encountered in attaining the objectives of full, productive and freely chosen employment.

4. Article 3. Participation of the social partners in the formulation and application of policies. The Government indicates that, for the purpose of advising him on employment policy issues, the Minister for Employment has set up the National Employment Council (Beskæftigelsesrådet). The National Employment Council helps control the employment initiatives by providing advice to the Minister for Employment and the Minister of Refugee, Immigration and Integration Affairs and by making recommendations in respect of more extensive employment policy proposals, experimental activities, follow-up on employment initiatives, and bills and other regulation of the employment policy area. The comments of the Council on a bill and the Minister’s comments thereon are sent to the Labour Market Committee of the Danish Parliament before any reading of the bill in the Parliament. Following the local reform on 1 January 2007, the Government and the municipality will collaborate on employment initiatives in a job centre established by the municipal council. The job centre must focus on employment, self-support and availability of jobs. The Committee trusts that the Government will continue to provide information on the consultations held with the social partners, including the National Employment Council, with regard to the manner in which they contribute to the implementation of an active employment policy.