Direct Request (CEACR) - adopted 2010, published 100th ILC session (2011)

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

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee notes the Government’s detailed report received in October 2009 which included replies to its 2007 direct request. The Government indicates that the national economy has been affected by international financial instability and declining international demand and will have an impact on entrepreneurial activity in the coming years. The continued decrease in unemployment and increase in employment in the past years has been enhanced by measures introduced by the Welfare Agreement. Since autumn of 2008, positive effects have been counteracted by the crisis and an increase in unemployment occurred. According to Eurostat, unemployment increased in 2009; in July the unemployment rate was 6.1 per cent and 11.3 per cent for people under 25 years of age. The Government reports that the two themes which dominated the agenda of the National Employment Council were the implementation of the new job centre model and the shortage of labour. The Council will continue to discuss the activity and performance of the job centres, the current labour shortages and the increasing unemployment situation and their effect on youth unemployment. The Committee requests the Government to provide information in its next report on policies and programmes promoting full employment and how these policies and programmes will translate into productive and lasting employment opportunities for the unemployed and for other categories of vulnerable workers affected by the crisis.

Measures taken in response to the global crisis. Among the measures introduced as a consequence of the crisis, the Government reports the following: (i) more flexibility for rules and provisions with regard for work sharing and short-time working arrangements; (ii) retraining or education measures to prevent unemployment for persons working or not yet dismissed; (iii) more flexible rules and regulations for mass dismissals among enterprises with more than 20 employees; (iv) reinforced regional assistance to job centres and enterprises; (v) subsidies for employers hiring candidates who are skilled and unskilled, employed and unemployed and those with an outdated education; and
(vi) simplify the number of target groups among young unemployed persons to give all young people better opportunities for education and training. The Committee invites the Government to provide information regarding the impact that the active labour market measures have had on generating employment and on limiting the rise of unemployment.

Regional development. The Government indicates that regional growth forums are responsible for the drafting of regional business development strategies, the monitoring of the regional growth conditions and for the selection of EU-structural fund projects. The Committee notes that they have been focusing on raising the general level of education and competence for both employed and unemployed persons. Growth forums have also focused on cooperation among training institutions to develop courses that respond to the needs of the business sector. The Government reports that an important part of their globalization strategy is the conclusion of regional partnership agreements on growth and business development between the Government and regional growth forums, which contribute to expand the government strategy in the country while strengthening the regional framework for growth and development. In the partnership agreements, the Government and the growth forums establish a series of common goals and prioritize initiatives for promotion. The Committee also notes the benchmarking system installed through the National Labour Market Authority’s statistics portal (www.jobindsats.dk), which provides the possibility of comparing efforts and results across municipalities and regions to provide politicians, leaders and employees with better information for decision-making, as well as local, regional and national organization efforts. The Committee invites the Government to continue to provide information on the impact that these partnerships are having on employment creation and regional development.

Entrepreneurship. The Government indicates that 31 new initiatives have been launched to improve the framework for high-growth start-ups. These initiatives focus on improving innovation and entrepreneurship in the educational system, establishing accessible and qualified advisory services for entrepreneurs and small enterprises and ensuring lower taxes for high-growth start-ups. The Committee invites the Government to inform on how the decreased level of entrepreneurial activity has impacted the labour market.

Means to promote employment among older workers. The Government indicates that the Welfare Agreement introduced two new opportunities for unemployed workers over 55 years old, namely a wage subsidy scheme in private enterprises and senior employment positions in municipalities. Both schemes have been implemented less quickly than expected and consequently, have embraced very few persons until now. The Government reports entering into a job scheme agreement in February 2008 to increase the labour supply for both the short and long term. The main objective of the job scheme was continued strengthening of employment amongst seniors and persons with reduced work capacity. The scheme also focuses on increasing the recruitment and retention of a qualified foreign labour force. The Committee invites the Government to include information in its next report on the impact of the measures being taken to encourage and support the employment of older workers.

Workers with disabilities. The Government indicates that according to the report Disability and Employment, since 2004 some 17,000 more persons with disabilities have been employed. The Committee invites the Government to include in its next report information on the impact that the strategy, “Disabled and work – it is possible”, is having to help people with disabilities overcome obstacles to access the labour market.

Recruitment of foreign labour. The Government indicates that there is a shortage of manpower in certain industries including: health and social services, information and communication, agriculture, forestry, fishing and raw material recovery. The Committee notes that the Government implemented initiatives in recognition of the increasing need for a strengthened and more flexible recruitment system of foreign workers. Such initiatives included an easing of admission requirements for qualified labour, integration offers, targeted information and assistance to match employees and enterprises. Support was created in 2008 through centres to provide assistance and advice to foreign employees pursuing employment in Denmark as well as Danish enterprises which sought to recruit labour abroad, additional support was created through the “www.workindenmark.dk” portal. The Committee invites the Government to continue to provide information on measures taken to facilitate the insertion of foreign workers in the labour market.

Educational and training policies. The Committee notes detailed information provided by the Government regarding: (i) measures to promote recognition of prior non-formal and informal learning with the participation of the social partners; (ii) the National Danish Qualification Framework; (iii) changes in admission restrictions for specific secondary vocational education programmes; (iv) a package aimed at providing more in-service training placements; (v) different measures taken in a tripartite context to increase in-service training at schools as an alternative to in-service training in private companies; and (vi) to avoid mismatches of labour supply and demand. The Committee notes that the Act on Vocational Education and Training was amended to reduce the drop-out rate and to simplify the overall system of secondary vocational education and training so that more young people can complete an educational programme that gives them the vocational qualifications needed to find permanent employment. The Government also reports that new legislation is being prepared to implement vocational education and training centres to improve the overall infrastructure for the provision of adult vocational education and training from 2010. The Government aims to promote lifelong learning for all and within all areas where human knowledge, skills and competences are developed and applied. The Committee notes that, in 2008, social partners in private sectors within collective agreements sought to enhance employee rights on training and new financial schemes where companies pay a “levy” per employee to a competence fund set up within the sector in order to promote workforce participation in continuing vocational training, including adult vocational and in-service training. Guidance and counselling for employees and companies regarding adult education and training also plays an important part in the Government’s strategy. The Committee invites the Government to continue to provide in its next report information on the impact of measures taken for the recognition of prior learning, for the upgrading of skills and the possibility of acquiring relevant work experience while completing a degree in order to ensure employment opportunities for beneficiaries.