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

Direct Request (CEACR) - adopted 2022, published 111st ILC session (2023)

Articles 1 to 3 of the Convention. Active labour market measures. Participation of the social partners. The Committee notes that, according to the European Commission 2022 Country Report on Denmark (Document SWD (2022) 607 final), after declining in early 2020 due to the COVID-19 pandemic, employment has been increasing steadily and unemployment has fallen to one of its lowest rates since 2008 (the unemployment rate was 5.1 per cent in 2021). According to EUROSTAT, the overall employment rate was 79.1 per cent (82.5 per cent for men and 75.6 per cent for women). The Committee notes the information provided by the Government concerning the impact of the active labour market measures implemented during the reporting period. It also notes the Government’ indication that the social partners have significant influence on employment policy. In this context, the Committee notes the tripartite agreement signed in March 2020 introducing wage compensation schemes through which enterprises received temporary wage compensation, which enabled the implementation of temporary active labour market interventions aimed at protecting workers, enterprises, and incomes during the COVID-19 pandemic. The Government indicates that almost 250,000 workers benefitted from these schemes. In addition, the Government invested DKK 1.7 billion beginning in the summer of 2020 to upskill and reskill unemployed persons, mitigating the immediate negative effects of the crisis and developing a more skilled workforce. In this context, the Committee refers to its 2022 comments regarding the application of the Employment Service Convention, 1948 (No. 88), in which it notes the set of measures taken in the framework of the agreement between the Government and political parties to simplify the employment system. The Government reports that, in November 2017, the sum of DKK92 million was allocated to a series of projects intended to support upskilling of the unemployed workforce, as well as to address certain bottlenecks in the labour market. However, challenges remain in relation to labour shortages in different sectors, particularly in the construction sector, the hotel and restaurant sector, information and communication services, and in the cleaning and other operational services. The Committee further notes from the European Commission report that, in April 2022, 43 per cent of firms in the construction sector reported experiencing labour shortages, as did 37 per cent of firms in the services sector. Labour shortages have also been reported in greening sectors, such as the professional, scientific and technical sectors. The Committee requests the Government to continue to provide updated detailed information, disaggregated by sex and age, on the nature, scope and impact of employment measures taken to increase labour supply and reduce unemployment, including the impact of measures taken to address labour market bottlenecks.It further requests the Government to continue to provide updated detailed information on the engagement of the social partners in the formulation and implementation of employment policy measures and programmes.

Education and training. The Government refers to the signing of a tripartite agreement in October 2017 which undertook to build a stronger, more flexible adult and continuing education and training system. The agreement provides for, among other measures, the establishment of a fund for the purpose of providing skills upgrading for workers, to ensure that the workers’ skills respond to the needs of the labour market. The Government reports that a budget of DKK2.5 billion has been allocated for this purpose. An evaluation will be carried out at the end of the four-year implementation period, when the parties will meet to discuss the rest of the saved funds regarding adult and continuing education. The Committee requests the Government to continue to provide updated detailed information on the impact of the education and training programmes implemented, including the results of the evaluation of the tripartite agreement on adult and continuing education. The Government is also requested to provide information on further measures that may be envisaged in this context.

Regional development. The Committee notes the information provided by the Government on the results of the regional development measures implemented in the framework of the European Regional Development Fund (ERDF) programme and the European Social Fund (ESF) programme. The funds are implemented to support growth and employment across the country through innovation, entrepreneurship, green growth initiatives, education and job creation. The ERDF programme contains four focus areas: innovation in small and medium enterprises (SMEs), creating more high growth SMEs through counselling, supporting green transitions in SMEs and circular economy, providing advice to companies on becoming more resource efficient, and initiatives in cities with more than 30,000 inhabitants. The ESF programme also contains four priority axes: entrepreneurship and growth-oriented informal training, social inclusion, vocational education, and higher education, and increasing the mobility of labour across national borders through the EURES network (the European cooperation network of employment services, designed to facilitate the free movement of workers). The Committee requests the Government to continue to provide updated detailed informationon the results of the regional development measures in terms of creating lasting and sustainable employment, including statistical information, disaggregated by age, sex and region.

Older workers. The Committee notes that, according to EUROSTAT, the employment rate among older workers (population aged 55 to 64) in 2021 was 72.3 per cent. The Government indicates that seniors do not have a general increased risk of unemployment; however, if they lose their job, they experience a slightly higher risk of long-term unemployment. Moreover, the Government provides information regarding the allocation of funds for the implementation of initiatives targeted at unemployed older workers. These include experimental schemes aimed at determining whether placing older workers in temporary jobs can help them to reintegrate into the labour market, as well as the establishment of local “senior networks”, which provide job search assistance to older workers in addition to training and motivational activities. Other measures include lowering procedural requirements for older workers to receive wage subsidies. The Committee requests the Government to continue to provide updated detailed information on measures taken to promote the employment of older workers as well as on the impact of such measures on their ability to access or remain in lasting employment.

Workers with disabilities. The Government reports that, in 2019, 84 per cent of persons without disabilities were in employment, compared to 58 per cent of persons with disabilities. The Government adds that the employment gap between people with disabilities and those without disabilities declined from 35 per cent in 2012 to 26 per cent in 2019. It indicates that there has long been an untapped employment potential among people with disabilities. In January 2022, a new agreement on a "Better Resource Clarification Process (Bedre Ressuorceforløb)" entered into force, with a view to providing more tailored resource courses and carrying out early interventions. For instance, participants have a right to receive professional advice from a health coordinator, who can advise them as to whether a job offer takes sufficient account of the participant’s health situation. Participants also have the right to a personal job intermediary. This intermediary, working in cooperation and close dialogue with the person, is required to provide support to ensure that the right match is created between the person and an employer, so that the person can be employed as an ordinary employee. The Government indicates that if participants have not been placed in a job, an action under the Social Services Act or a municipal action under the Health Care Act, within 6 months of the start of the resource programme, they are entitled to receive an “effort guarantee”. The Government reports that, in 2019, after three months of the resources course, only 3 per cent of the participants were in employment, 3 per cent had become self-sufficient and 1.2 per cent had entered education. The Government adds that 3 out of 5 participants had been granted an early retirement pension. With regard to women with disabilities, the Committee notes that, in its 2021 concluding observations, the UN Committee on the Elimination of Discrimination against Women (CEDAW) expressed concern at the lack of data on the participation rate of women with disabilities in the Danish labour market (Document CEDAW/C/DNK/CO/9, paragraph 32(d)). The Committee requests the Government to continue to provide updated detailed information, including statistical data disaggregated by sex and age, on the impact of the measures taken to promote equal access to employment opportunities for women and men with disabilities on the open labour market.

Recruitment of foreign workers. The Committee notes the information provided by the Government concerning the measures taken to promote the recruitment of EU workers. The Government indicates that, following the expansion of the EURES Network to private employment agencies, in 2019 it admitted new partners. Moreover, the Government refers to the entry into force in July 2020 of the Positive List for Skilled Work scheme (updated twice a year), which is a list of skilled professions for which there is a shortage of qualified professionals in Denmark. The main objective of this residence scheme is to assist national companies by facilitating their access to qualified professionals within certain fields. The Government adds that, under the scheme, the salary and terms of employment must correspond to national standards, thereby avoiding social dumping. The Labour Market Attachment scheme also entered into force in July 2020. It enables national companies to keep foreign nationals as workers if they have been working in Denmark for at least two years and if the original residence permit of the foreign national has been revoked or an extension has been refused. This scheme enables Danish companies to keep foreign workers that they have trained within their field of work. The Committee requests the Government to continue to provide updated detailed information on the impact of the measures taken concerning the recruitment of foreign workers from both EU and non-EU countries, as well as any measures taken or envisaged with respect to the employment of migrant women.

Youth employment. The Committee observes that, according to EUROSTAT, in 2021, the youth employment rate stood at 53.9 per cent (while the EU has an average employment rate for young persons of 32.7 per cent). Denmark has one of the lowest rates in the EU of young people (aged 15 to 29) who are neither in employment in education or training (NEETs): 8 per cent among young men and 8.9 per cent among young women. The Committee notes with interest the Government’s indication that measures to promote the employment of young people are developed and implemented in collaboration with the social partners and other stakeholders, which include job centres, municipalities, educational institutions and municipal youth guidance units. At the local level, municipalities are responsible for establishing coherent and cross-sectoral measures for young persons which coordinate educational, employment and guidance initiatives through the municipal youth guidance units. The units offer guidance and outreach services, as well as follow-up work to young people under the age of 25. In this respect, the youth guidance units cooperate closely with primary and lower secondary schools and youth educational institutions, as well as with local businesses and the public employment service. At the regional level, the regional guidance centres also cooperate with relevant stakeholders, including youth educational and higher education institutions, as well as the social partners. Finally, the Government indicates that the preparatory basic education system was reformed in 2019, with the adoption of the Act on Municipal Youth Measures (Lov om kommunal indsats for unge under 25 år, LBK nr 825 af 16/08/2019). Following the adoption of the 2019 Act, the guidance services provided by municipalities for young people under the age of 25 must meet certain requirements, which include taking into account the interests and personal qualifications and skills of the individual, including informal competencies and previous education and work experience, as well as the expected need for skilled labour and self-employment. The services target young people who, in the absence of individualised guidance, are expected to experience difficulties in relation to choice and completion of an education, training and career. The Committee requests the Government to continue to provide updated detailed information, including disaggregated statistical data on youth employment measures taken or envisaged, as well as on their impact.

Direct Request (CEACR) - adopted 2017, published 107th ILC session (2018)

Articles 1 and 2 of the Convention. Active labour market measures. Employment trends. The Government provides detailed information in its report on the results achieved by active labour market measures. The objectives of the Employment Reform, which came into force in 2015, include: ensuring that, through individually tailored employment initiatives, more unemployed people gain access to long-term employment; increasing the level of education of unemployed people with the smallest skill sets; and supporting unemployed persons at highest risk. The Committee notes the several schemes and reforms undertaken by the Government, including the New State Reimbursement Reform of 2015, which aims to reinforce municipalities’ efforts to bring individuals closer to unsubsidized employment and the Unemployment Benefit Reform of 2016, which aims to enhance labour mobility and security in the Danish labour market. The Committee notes that employment has been developing positively since mid 2013. From March 2016 to March 2017, employment rose by 43,000 people. The unemployment rate decreased from 4.7 per cent in April 2015 to 4.3 per cent in April 2017. The Government indicates that bottlenecks in the labour market are closely monitored and that, although there is currently no general shortage of labour, employers are experiencing difficulties recruiting in the construction, hotel and restaurant sectors, in information and communication services, and in cleaning and other operational services. However, the extent of the shortage remains significantly lower than the level before the financial crisis. The Government further indicates that educational initiatives and the Tripartite Agreement on Labour Market Integration, concluded in 2016, aim to prevent and address these bottlenecks. The Committee requests the Government to continue to provide information on the impact of the employment measures on increasing labour supply and reducing unemployment, including the results of the measures taken concerning labour market bottlenecks. It also refers to its previous comments and once again requests the Government to provide information on the actions taken based on the Knowledge Bank to promote employment, including statistical data disaggregated by age and sex.

Regional development. The Government indicates that funds received from the European Regional Development Fund and the European Social Fund under its new programming period 2014–20 are implemented to support growth and employment across Denmark. The Committee notes that, while it is too early to measure the effects of the Danish Structural Fund projects launched in the 2014–20 period, the projects launched in the period 2010–12 helped to create approximately 4,200 private full-time jobs. The Committee requests the Government to provide updated information on the results of the regional development measures, such as the projects carried out under the Danish Structural Fund.

Older workers. The Committee notes that, while employment levels for older workers have increased significantly in Denmark over the last couple of years, older workers who become unemployed are at increased risk of becoming long-term unemployed. The Government indicates that it has therefore enacted measures targeting older workers. In this respect, unemployed persons who have no more than five years to work until they reach the age of early retirement are given priority for so-called “senior jobs” in the municipality where they live if they have exhausted their rights to unemployment benefits. The Committee requests the Government to provide updated information on the impact of the measures taken to promote the employment of older workers.

Workers with disabilities. The Committee notes that the employment rate of persons with disabilities increased from 43 per cent in 2014 to 52 per cent in 2016. The Government indicates that the reform of the Disability Pension and Flexi-job Scheme from 2013 is currently undergoing an extensive evaluation, which is expected to be published in 2018. In 44 per cent of the interdisciplinary rehabilitation programmes concluded as part of the reform, close to one third of persons that entered the disability pension scheme moved closer to the labour market. The Committee requests the Government to continue to provide information, including disaggregated statistical data, on the impact of the measures taken to promote employment opportunities of persons with disabilities in the open labour market.

Recruitment of foreign workers. The Committee notes that the demand for International Citizen Service (ICS), has continuously increased, with 63,320 inquiries in ICS centres in 2016, adding that customer satisfaction remains very high. The Government is currently looking into possible adjustments to the ICS-model as a key element in securing Danish companies’ access to qualified foreign workers and attract and retain international talents in Denmark. The Government further indicates that the Integration Allowance, introduced in 2015, for foreigners and nationals who have not resided in Denmark in seven of the past eight years aims to ensure a larger incentive to work and to become integrated into Danish society. Moreover, the Tripartite Agreement on Labour Market Integration of 2016 aims to allow refugees and their family members to gain a foothold in the Danish labour market, by providing a stepping stone to further education. The Committee requests the Government to continue to provide information on the measures taken or envisaged concerning the recruitment of foreign workers.

Education and training policies. Youth employment. The Government indicates that, through the Employment Reform, new graduates from higher education institutions will have greater opportunities to gain a foothold in the labour market, including via vocational traineeships of a longer duration. Furthermore, the cash benefit reform implemented in January 2014 has increased the number of young jobseekers between the ages of 25 and 29 that are obtaining employment. Of the cash benefit processes that started in 2013, approximately 3,900 ended in employment or enrolment in education. The Committee requests the Government to continue to provide information on youth employment measures taken or envisaged. It also requests the Government to provide information on the manner in which the social partners and other stakeholders concerned are consulted with respect to the development of education and training programmes, particularly for young persons and other disadvantaged groups, that meet the needs of the labour market.

Article 3. Participation of the social partners. The Government indicates that social dialogue is an important factor contributing to ensuring sustainable solutions in the labour market. In 2016, a Tripartite Agreement on Labour Market Integration was concluded between the Government and the social partners on the framework for an earlier and better integration of refugees and family members into the Danish labour market. More than 30 comprehensive initiatives were included in the tripartite agreement in order to ensure that integration efforts begin earlier and that they increasingly take place at workplaces. The Committee requests the Government to continue to provide information on the involvement of the social partners in the formulation and implementation of employment policy measures and programmes.

Direct Request (CEACR) - adopted 2015, published 105th ILC session (2016)

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Government indicates in its report that the employment policy reform will be gradually implemented beginning in 2015 and will focus on the needs of the unemployed and employers. With regard to the labour market bottlenecks, the Committee notes the Government’s indication concerning the recruitment process for about 9,000 positions which ended in vain in spring 2014, with the highest shortage of labour supply occurring in the construction and trade sectors and knowledge services. The Government adds that ongoing monitoring of the labour market and identification of risks of bottlenecks is mainly based on a biannual survey asking companies about the number of unsuccessful recruitments during the prior two months. Information is also collected on the effects of various employment schemes and has been disseminated through a web-based Knowledge Bank. Moreover, information obtained in 2011–12 demonstrated that there is no difference in the employment effects between job centres and private employment services for the unemployed with academic backgrounds who receive unemployment benefits. Moreover, the Committee notes that the initiative to hire more consultants at job centres was implemented in 2010–13 and resulted in an increase of the number of consultants from 6.6 to 9.5 at each job centre and a decrease in the number of the long-term unemployed. The Committee requests the Government to provide information on the impact of the employment policy reform on increasing labour supply and reducing unemployment, including the results of the measures taken concerning the labour market bottlenecks. Please include information on the actions taken based on the Knowledge Bank to promote employment, including the statistical data showing the results.

Regional development. The Committee notes that result-oriented projects to help strengthen growth in the regions have been promoted by the Danish Business Authority and six regional growth forums. The projects are designed to achieve the specific objectives envisaged under the European Social Fund or the European Regional Development Fund programme 2014–20. The Committee requests the Government to provide information on the results of the regional development measures, such as the projects carried out by the Danish Business Authority and the six regional growth forums.

Older workers. The Committee notes with interest that a job scheme introduced in the municipalities in 2008 resulted in a dramatic increase of jobs for older workers: from 13 in 2008 to 4,380 in 2013. The Committee requests the Government to continue to provide information on the measures taken to promote employment of older workers.

Workers with disabilities. The Committee notes the information provided indicating that the first goal of the employment strategy for persons with disabilities, which was to increase the number of enterprises that are comfortable working with a person with a mental illness by five percentage points between 2009 and 2012, was achieved. Neither the second goal of the said strategy, that is to increase the awareness of the possibilities for persons with disabilities to work, including flexi-jobs, personal assistance and financial support for aids in the workplace, nor the third goal, which was to increase the number of employed persons with disabilities, were fulfilled by 2012. The Committee further notes that the reform of the disability pension and the flexi-job scheme was implemented in January 2013 to include persons with the smallest working capacity in the labour market. The Committee requests the Government to continue providing information on the measures taken to promote employment opportunities of persons with disabilities in the open labour market, including the impact of the disability pension reform on the employment of persons with disabilities.

Recruitment of foreign workers. The Committee notes that the reform on international recruitment was adopted in June 2014 to facilitate the access of companies to international labour supply. It also notes that the evaluation of the activities of the International Citizen Service (ICS) made in June 2013 shows the high satisfaction among the users. Current activities of the ICS, however, are not offered to all foreign workers. In this regard, the Government indicates that a working group was established to get wider geographical range of foreign workers with the principle of a simple entry of foreign workers, students and their families. The Ministry of Employment has also been involved in two biannual forums for exchange of information on recruiting foreign labour. The Committee requests the Government to provide information on the impact of the abovementioned measures on recruitment of foreign workers, including the results of the reform on international recruitment.

Education and training policies. Youth employment. The Government indicates that the cash benefit reform implemented in January 2014 focuses on getting young people in education or employment, and ensuring that young people under 30 without education are eligible for educational grants. The Committee notes that the unemployment rate for young people was 12.9 per cent in December 2013, while it was measured at close to 6 per cent for people in the 25–74 age group. It also notes that in 2013 the rate of young people not in employment, education or training was 6 per cent and that the employment rate for people between the ages of 20 and 29 was 67.7 per cent. The Committee requests the Government to continue to provide information on the impact of the youth employment measures, including the impact of the cash benefit reform on the employment of young people.

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. The Committee notes the Government’s report received in October 2011, which includes detailed replies to its 2010 direct request. The Government indicates that it considers it crucial to ensure that as many people as possible maintain their attachment to the labour market and their qualifications, and upgrade their skills. The Danish flexicurity model is being continuously adjusted in connection with the reforms to help increase labour supply and reduce structural unemployment. It contains different schemes that aim to include as many people as possible in the labour market, working towards promoting full employment. The Committee notes that the unemployed, who are entitled to income-related benefits, are offered guidance and qualification enhancement, on the-job training and employment with subsidized wages. It also notes the active labour market measures being taken to decrease structural unemployment, for example, making an effort to find employment despite relatively high public benefits. The long-term employment rate target is 80 per cent by 2020. The Committee notes that the employment rate was 77.8 per cent in 2009 and 76.1 per cent in both 2010 and 2011. The unemployment rate was 6 per cent in 2009 and 7.4 per cent in 2010. According to the Organisation for Economic Cooperation and Development (OECD), the long-term unemployment (as a share of total unemployment) increased sharply between 2009 and 2010. The Government indicates that action was taken against the “bottlenecks” on the Danish labour market in both the public and private sectors with a shortage of manpower in 2011. Short-term solutions have been provided on labour supply. The Committee invites the Government to provide further information in its next report on the impact of the reforms to help increase labour supply and reduce unemployment, the incentives provided to work, and the short-term solutions affecting the labour supply both in the short term and long term. It further invites the Government to continue providing information on the action taken against the bottlenecks on the labour market along with an evaluation of this action.

Measures taken in response to the global crisis. The Government indicates its focus on gathering evidence about the active labour market measures as to which schemes are effective for the unemployed. The National Labour Market Authority collected information through random controlled experiments. In these experiments, unemployed people were divided into two groups – i.e. “the control group” and “the other group”. The results from these experiments indicate that structural unemployment decreased due to the probability of an increase in exiting unemployment following the early and intensive meetings with case workers. The results also indicate a high frequency of counselling sessions and temporary subsidized employment in private firms. The Committee also notes that a short education programme is provided for the unemployed. Other active labour market measures include initiatives (announced by the Minister of Employment in January 2010) to help employers and people at risk of unemployment, the Action Plan on long-term unemployment (2010), flexible employment, an Active Labour Market Effort That Works (2010), and two political agreements with the social partners to strengthen the municipalities’ financial incentives to improve efficiency of their employment policies with an increased emphasis of on-the-job training. The Committee invites the Government to provide more details on the employment schemes implemented by the National Labour Market Authority for unemployed people in the “control group” and “other group”, and statistics on those employed as a result thereof. The Committee also invites the Government to provide information and results on the steps provided in the individual action plans to return to employment under the abovementioned initiatives.

Regional development. The Committee notes that the partnership agreements have helped to create more coherence between national, local and regional efforts for growth and business development. The local and regional actors have the knowledge on specific challenges in each municipality or any region and can target specific local and regional issues. The regional partnership agreements contain initiatives that include, but are not limited to, training, education, labour supply and better growth conditions for new and small enterprises. The Danish Enterprise and Construction Authority (DEACA) and six regional growth forums cooperate on concrete activities that can strengthen the evaluation and monitoring of regional initiatives. The benchmarking system in the website is being continuously developed to compare efforts and results across municipalities and regions. The Committee invites the Government to provide an evaluation of the implementation of the common goals established between the central government and regional growth forums. It also invites the Government to continue to provide information on the activities carried out by the DEACA and the six regional growth forums strengthening the evaluation and monitoring of the regional initiatives.

Means to promote employment among older workers. The Committee notes that the Welfare Agreement introduced two new opportunities for unemployed people over the age of 55, namely the wage subsidy scheme in private enterprises and the senior job scheme in the municipalities. The wage subsidy scheme expires on 1 January 2013. The Committee invites the Government to provide an evaluation of the results from these two schemes under the Welfare Agreement, particularly in terms of increasing employment opportunities for older workers.

Workers with disabilities. The Committee notes that the Government has not yet finished implementing and evaluating all the initiatives under the Strategy “Disabled and work – It is possible”. The three specific goals for the Strategy are: (a) the percentage of companies that hire persons with disabilities must increase with five percentage points before 2012; (b) five percentage points of enterprises more than today must be comfortable with working together with a person with a mental illness; and (c) 15 per cent of people on an early retirement pension shall participate in a discussion at the job centre concerning the possibility to come back into work. The Committee invites the Government to provide more information on the impact of the initiatives of the Strategy, including the percentage of persons with disabilities who are employed in the open labour market as a result of this Strategy.

Recruitment of foreign labour. The Committee notes that in January 2011, the four branches of the International Citizens Services (ICS) were established to assist foreign employees and jobseekers with their establishment, recruitment and retention in Denmark. The Government established a working group with the participation from social partners, ministries, companies and NGOs to explore new ways to attract highly qualified labour from outside Denmark. The Committee invites the Government to provide an evaluation of the impact of the measures taken to facilitate the insertion of foreign workers into the labour market. The Committee would also find it helpful to access further information on how the ICS and local companies help foreign employees and jobseekers in Denmark.

Education and training policies. The Committee notes that the Government aims to have at least 95 per cent of all pupils in education and training complete their education by 2015. It notes that step-wise qualifications were introduced to meet the continuing demands of the labour market. The number of training places reduced in 2008. Based on the “Agreement on future prosperity and welfare and investments in the future”, the Government’s 2006 strategy has been gradually implemented between 2007 and 2012. The adult education and continuing training aims to increase the number of adult participants in reading, writing and mathematics courses up to 40,000 per year. The National Centre for Knowledge and Information on Prior Learning (established in 2009) was evaluated in 2009–10 which indicated the need for both non-formal and informal learning, and that there are more people enrolled in adult education and training. The National Qualification Framework (NQF) for lifelong learning was adopted and implemented in 2010 with the referencing of the Danish NQF to the European Qualifications Framework (EQF) successfully completed in 2011. Youth unemployment increased from 11.2 per cent in 2009 to 13.8 per cent in 2010. The youth NEET rate (i.e. persons neither in employment nor in any education and/or training) was 5.2 per cent in 2009. According to the OECD, the employment rate among those aged 15–24 dropped from 63.5 per cent in 2009 to 58.1 per cent in 2010. The overall employment rate declined from 85.1 per cent in 2009 to 83.2 per cent in 2010 among those aged 25–54. The Government aims to increase the number of practical training places for young people to prevent long-term unemployment. The Committee invites the Government to continue providing information on the impact of these measures to encourage young persons to obtain sustainable employment and the precise statistics on the unemployment and employment rates of young persons after education and training.

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

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.

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

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.

Direct Request (CEACR) - adopted 2005, published 95th ILC session (2006)

The Committee takes note of the information contained in the Government’s report covering the period ending in June 2004.

1. Labour market measures. The Government indicates in its report that while unemployment had, in 2001, reached its lowest level in more than 25 years, it increased slightly in the following two years to reach 6.6 per cent of the labour force. However, since the increase in unemployment reflected the impact of the slow down in the international economy and a fall in the return into the job market of unemployed persons, the Government expects the situation to improve and its medium-term target is to increase the number of employed persons by 60,000 between 2003 and 2010 and to reduce unemployment to a level of 4.5 per cent of the labour force. The Government considers the increase of the labour force as a key element of its employment policy and intends to achieve its objective by raising employment rates amongst women, older workers and ethnic minorities to a level that exceeds the fall due to demographic change.

2. Moreover, in order to improve the employment situation, the Government adopted Act No. 419 of 10 June 2003 on active employment measures. This Act collects the data for insured and non-insured unemployed persons in order to give a more visible and better-coordinated labour market system. The main principle is to focus on the individual, using the same evaluation method for each person and by encouraging contacts between unemployed persons and the employment institutions every third month. The aim of the intensive contact programme is to get unemployed persons back into ordinary jobs as fast as possible by increasing the focus on job seeking and job placement. The Committee would appreciate receiving further information on measures taken to increase the employment rate of older persons over 55 years of age. Please also clarify how the unemployment benefits policy contributes to promoting the re-entry into employment of the beneficiaries.

3. In addition, the Government states that, in order to meet its objective to increase the labour force, better incentives are introduced for unemployed persons over the age of 50 to stay on the labour market and better possibilities are offered for persons with disabilities to get into employment. It also mentions that the municipalities’ placement of jobs for persons with weak resources will be strengthened and that subsidies will be granted to set up special placement units. As regards young people, the Government launched, in 2002, a plan for a "better education" comprising different themes such as increased quality, flexibility, a strengthening of interdisciplinary guidance and internationalization of education programmes. The guidelines of this plan are to strengthen the education and initiative capacity of the workforce in order to prepare it for a knowledge society. Lastly, the Government indicates that, on the demand side, it supports job creation and entrepreneurship by actively promoting an entrepreneur culture and by granting effective access to capital for new enterprises, in order to enhance the survival rate for these new enterprises. The Committee takes note with interest of these measures and looks forward to receiving from the Government in its next report an assessment of the impact of its active labour market policies, including information on the extent to which these measures have been successful in achieving its objectives of increasing the labour force and reducing unemployment. Please also include detailed disaggregated information on labour market trends (Articles 1 and 2 of the Convention).

4. Participation of the social partners. The Government indicates that the former National Labour Market Council and the Social Council has been discontinued and replaced by the Employment Council. The organization of the Employment Council has been expanded to include representatives from the Danish Council of Organizations of Disabled Persons. The Government indicates that the tasks of the Employment Council are the same as the ones performed by the former National Labour Market Council and consist in advising the Minister of Employment on employment policies and making recommendations on the regular activities of the employment services. The Committee takes due note of this information and asks the Government to transmit, in its next report, any relevant examples of reports or recommendations that the Employment Council has adopted on the matters covered by the Convention.

Direct Request (CEACR) - adopted 2004, published 93rd ILC session (2005)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its 2003 direct request, which read as follows:

1. The Committee notes the information contained in the Government’s informative report for the period June 2000 to June 2002, as well as the detailed replies in response to its 2001 direct request.

2. Articles 1 and 2 of the Convention. The Committee notes that there was a continual improvement of the employment situation. The unemployment rate has reached historically low levels while at the same time employment has been continually rising. Between 1998 and 2001 employment increased by approximately 56,000 persons while unemployment for the same period fell by 32,000. Female employment has increased by three times more than male employment and female unemployment has fallen approximately 50 per cent faster than male unemployment. Youth unemployment has also continued falling: in 2001 only about 6,000 persons between the ages of 18 and 25 were unemployed. The Committee would appreciate continuing to receive detailed disaggregated information on labour market trends.

3. The Government indicates that the most recent modification to the labour market policy, as mentioned in the action plan for "More people in employment", marks an adaptation to prosperity. It is a government objective to increase employment by 87,000 persons by the year 2010. The Committee notes this target and trusts that the Government will be able to report on the progress to achieve this important objective in its next report.

4. The Government states that it has assembled a new ministry, the Ministry of Employment, which is responsible for both passive and active labour market policies. Due to the continued rise of employment and decrease of unemployment during the reporting period, minor adjustments were made in labour market policy in order to focus on the fastest way to employment and on disadvantaged jobless persons. The adjustments have increased the flexibility of the Public Employment Services’ (PES) efforts in relation to activation and strengthened the job seeking elements and placement activities.

5. The Government, through the new Ministry of Employment, concluded an important agreement with the social partners and the municipalities in May 2002 that strengthens labour market integration measures. Under the model established by the agreement, a labour market integration programme for new arrivals has been introduced comprising three phases: workplace introduction/practical work experience; workplace training/introduction to ordinary employment; and, finally, ordinary employment. For new arrivals needing to improve their knowledge of the Danish language the PES now also offer the possibility to quickly provide Danish lessons through a network of 51 language centres with 54 permanent subdivisions. The Committee asks the Government to continue to provide information on progress made on labour market integration and on further developments under this agreement.

6. The Government reports that the gender mainstreaming project that started in 2000 in three PES pilot regions has had a measurable effect in contributing to the dismantling of the sex-segregated labour market. In 2001 the project expanded to three more pilot regions with focus on activation measures that allow women to get qualifications necessary for performing jobs with high occupation possibilities. According to the Government’s plan, the mainstreaming approach will be more systematically extended to all regional public employment services and eventually focus on all instruments used by the PES. The Committee notes this information with interest, and would appreciate receiving further information on the impact of these measures.

7. Article 3. Further to its previous comments, the Committee notes the information provided by the Government concerning the National Labour Market Council, which acts in an advisory capacity to the Minister of Labour concerning matters such as the planning of labour market initiatives and the laying down of the framework for measures at the regional level. The Government explains that it has concluded that the National Labour Market Council and the National Social Council will be joined to create the National Employment Council which will cover the active labour market policy for all persons as well as the inclusive labour market. The Committee requests the Government to provide information in its next report on the opinions issued by the new advisory body, and to transmit any relevant examples of reports or recommendations that it has adopted on the matters covered by the Convention.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

1. The Committee notes the information contained in the Government’s informative report for the period June 2000 to June 2002, as well as the detailed replies in response to its 2001 direct request.

2. Articles 1 and 2 of the Convention. The Committee notes that there was a continual improvement of the employment situation. The unemployment rate has reached historically low levels while at the same time employment has been continually rising. Between 1998 and 2001 employment increased by approximately 56,000 persons while unemployment for the same period fell by 32,000. Female employment has increased by three times more than male employment and female unemployment has fallen approximately 50 per cent faster than male unemployment. Youth unemployment has also continued falling: in 2001 only about 6,000 persons between the ages of 18 and 25 were unemployed. The Committee would appreciate continuing to receive detailed disaggregated information on labour market trends.

3. The Government indicates that the most recent modification to the labour market policy, as mentioned in the action plan for "More people in employment", marks an adaptation to prosperity. It is a government objective to increase employment by 87,000 persons by the year 2010. The Committee notes this target and trusts that the Government will be able to report on the progress to achieve this important objective in its next report.

4. The Government states that it has assembled a new ministry, the Ministry of Employment, which is responsible for both passive and active labour market policies. Due to the continued rise of employment and decrease of unemployment during the reporting period, minor adjustments were made in labour market policy in order to focus on the fastest way to employment and on disadvantaged jobless persons. The adjustments have increased the flexibility of the Public Employment Services’ (PES) efforts in relation to activation and strengthened the jobseeking elements and placement activities.

5. The Government, through the new Ministry of Employment, concluded an important agreement with the social partners and the municipalities in May 2002 that strengthens labour market integration measures. Under the model established by the agreement, a labour market integration programme for new arrivals has been introduced comprising three phases: workplace introduction/practical work experience; workplace training/introduction to ordinary employment; and, finally, ordinary employment. For new arrivals needing to improve their knowledge of the Danish language the PES now also offer the possibility to quickly provide Danish lessons through a network of 51 language centres with 54 permanent subdivisions. The Committee asks the Government to continue to provide information on progress made on labour market integration and on further developments under this agreement.

6. The Government reports that the gender mainstreaming project that started in 2000 in three PES pilot regions has had a measurable effect in contributing to the dismantling of the sex-segregated labour market. In 2001 the project expanded to three more pilot regions with focus on activation measures that allow women to get qualifications necessary for performing jobs with high occupation possibilities. According to the Government’s plan, the mainstreaming approach will be more systematically extended to all regional public employment services and eventually focus on all instruments used by the PES. The Committee notes this information with interest, and would appreciate receiving further information on the impact of these measures.

7. Article 3. Further to its previous comments, the Committee notes the information provided by the Government concerning the National Labour Market Council, which acts in an advisory capacity to the Minister of Labour concerning matters such as the planning of labour market initiatives and the laying down of the framework for measures at the regional level. The Government explains that it has concluded that the National Labour Market Council and the National Social Council will be joined to create the National Employment Council which will cover the active labour market policy for all persons as well as the inclusive labour market. The Committee requests the Government to provide information in its next report on the opinions issued by the new advisory body, and to transmit any relevant examples of reports or recommendations that it has adopted on the matters covered by the Convention.

Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes the information contained in the Government’s report for the period 1 September 1998 to 31 May 2000, as well as the Labour Market Reforms - a Status, 1999, and the evaluation report on training.

1. Articles 1 and 2 of the Convention. The Committee notes that during the period from 1997 to 1999 employment increased from 71.9 per cent to 73.9 per cent; total unemployment decreased from 7.9 per cent to 5.7 per cent; for men, unemployment dropped from 6.7 per cent to 4.9 per cent, and for women from 9.3 per cent to 5.7 per cent. Unemployment also declined significantly for youth and older workers. Please supply information on the employment trends of other categories of workers, such as workers with disabilities, as requested in the report form under Article 1.

2. The Government states that it has implemented the third phase of its labour market reforms. This phase continues the reforms agreed with the Employers’ Confederation (DA) and the Confederation of Trade Unions (LO). The Government’s long-term objective is to increase employment by an average of 0.5 per cent per year until 2005. Labour policy measures are set based on regional labour market conditions, and the public employment service and local authorities can choose among a range of programmes.

3. Further to previous comments, the Government states that its 18-month training programme for unemployed youth is limited to a target group of people under 25 years of age who have been receiving social assistance for at least three months or who did not complete formal education or training and have been unemployed for at least six months. The goal is to motivate these jobseekers to go into ordinary education, training or employment. The Government states that as a result of the programme, the target group has fallen from approximately 7,000 in 1996 to about 700 in 2000, and appears to have the spillover effect of motivating youth outside of the target group to stay in school and to look more aggressively for a job. The Committee notes this information with interest and would appreciate continuing to receive information on the impact of this programme on youth employment.

4. The Committee also notes with interest the Government’s reply that older people are continuing to work due to tighter restrictions on taking early retirement, incentives to stay in work, special job search assistance, assistance to employers introducing senior policy initiatives, and subsidized employment in the public sector. These programmes have the benefit of allowing older workers to phase in retirement more gradually. The Senior Policy Initiative Committee advises the Government on employment promotion for older workers.

5. The Committee notes that the numerous programmes described in the Government’s report all refer to insured persons. However, the statistics provided by the Government indicate that there are numerous unemployed people who are not insured. For instance, in 1999, total unemployment reached 158,000, of whom 131,600 were insured, indicating that 26,400 were not covered. Please indicate what programmes exist to promote employment opportunities for uninsured jobseekers.

6. The Government states that more needs to be done to promote employment opportunities for people who do not speak Danish well. Please supply further information on progress made in this respect.

7. The Committee notes that there is no information in the Government’s report on how employment policy is coordinated with other economic and social policies. Please provide further information on the overall and sectoral development policies in areas such as investment, trade, fiscal and monetary policies and regional development, as requested in the report form under Article 1.

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

The Committee notes the leave scheme established by the Government in 1992 and modified by the Act on an active labour market policy, 1994. It would appreciate receiving further information on how many unemployed persons participated in the leave programmes, whether they are classified as employed or unemployed while on leave, and the rate of re-entry into work for these unemployed after their period of leave has finished. The Committee would also appreciate information on how many unemployed persons have been hired as substitutes for employed persons taking leave since 1994. Lastly, the Committee would appreciate receiving any information the Government might have on what proportion of the unemployed hired as substitutes remain in employment after the period of leave for which they are substituting is over, and what proportion re-enter unemployment.

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

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.

Observation (CEACR) - adopted 1997, published 86th ILC session (1998)

The Committee notes with regret that the Government's report has not been received. It must therefore repeat its previous observation which read as follows:

1. The Committee notes the Government's report for the period ending June 1994. It notes that most of the period was characterized by a low rate of economic growth, the continued decline in total employment and a rise in the unemployment rate, which flattened out at over 12 per cent in 1993 and 1994, in comparison with 11.2 per cent in 1992. According to OECD estimates, the livelier growth of the economy as of 1994 should make it possible to reduce the unemployment rate to 10.6 per cent in 1995. 2. The Government emphasizes that the reduction in the level of unemployment and the improvement of the employment situation have been among its very highest priorities since it entered office in January 1993. In this respect, it refers to the implementation of an expansionist fiscal policy in order to stimulate economic activity and promote employment, without jeopardizing sound economic development. In this context, it refers to the reform of income tax, public investments in infrastructure, initiatives to support entrepreneurs and strengthen research and development activities, and the creation of additional places in education and training, particularly in the field of further training for adults. The Committee would be grateful if the Government would continue supplying information on the manner in which the principal strategies of economic policy contribute to the perusal of employment objectives. 3. The Government also considers that the active labour market policy measures adopted have not been sufficient, for which reason it has commenced a reform with a view to harmonizing and decentralizing such measures as of January 1994, particularly through the adoption of the consolidation Act respecting the active labour market policy, which emphasizes the early identification of persons who are particularly threatened by long-term unemployment and a more effective individualized follow-up for jobseekers. The Act on leave is intended to promote temporary withdrawals from the labour market through training leave, parental leave and sabbatical leave with a view to a better distribution of employment, while at the same time contributing to the improvement of the skills and living standards of workers. The Committee requests the Government to indicate the extent to which the implementation of these provisions has resulted in the creation of new jobs. 4. The Committee notes the changes in the procedures for the consultation of the persons affected by employment policies. It notes the establishment under the Ministry of Labour of a Labour Market Council, the advisory competence of which is extended to the formulation and follow-up of all labour market policy measures. The Committee also notes the establishment of the Training Council, with responsibility for submitting proposals to the Minister of Labour concerning law and policy in this field. The Committee requests the Government to provide information in its next report on the opinions issued by these advisory bodies, and to transmit any relevant examples of reports or recommendations that they have adopted.

Observation (CEACR) - adopted 1996, published 85th ILC session (1997)

The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation which read as follows:

1. The Committee notes the Government's report for the period ending June 1994. It notes that most of the period was characterized by a low rate of economic growth, the continued decline in total employment and a rise in the unemployment rate, which flattened out at over 12 per cent in 1993 and 1994, in comparison with 11.2 per cent in 1992. According to OECD estimates, the livelier growth of the economy as of 1994 should make it possible to reduce the unemployment rate to 10.6 per cent in 1995. 2. The Government emphasizes that the reduction in the level of unemployment and the improvement of the employment situation have been among its very highest priorities since it entered office in January 1993. In this respect, it refers to the implementation of an expansionist fiscal policy in order to stimulate economic activity and promote employment, without jeopardizing sound economic development. In this context, it refers to the reform of income tax, public investments in infrastructure, initiatives to support entrepreneurs and strengthen research and development activities, and the creation of additional places in education and training, particularly in the field of further training for adults. The Committee would be grateful if the Government would continue supplying information on the manner in which the principal strategies of economic policy contribute to the pursual of employment objectives. 3. The Government also considers that the active labour market policy measures adopted have not been sufficient, for which reason it has commenced a reform with a view to harmonizing and decentralizing such measures as of January 1994, particularly through the adoption of the consolidation Act respecting the active labour market policy, which emphasizes the early identification of persons who are particularly threatened by long-term unemployment and a more effective individualized follow-up for jobseekers. The Act on leave is intended to promote temporary withdrawals from the labour market through training leave, parental leave and sabbatical leave with a view to a better distribution of employment, while at the same time contributing to the improvement of the skills and living standards of workers. The Committee requests the Government to indicate the extent to which the implementation of these provisions has resulted in the creation of new jobs. 4. The Committee notes the changes in the procedures for the consultation of the persons affected by employment policies. It notes the establishment under the Ministry of Labour of a Labour Market Council, the advisory competence of which is extended to the formulation and follow-up of all labour market policy measures. The Committee also notes the establishment of the Training Council, with responsibility for submitting proposals to the Minister of Labour concerning law and policy in this field. The Committee requests the Government to provide information in its next report on the opinions issued by these advisory bodies, and to transmit any relevant examples of reports or recommendations that they have adopted.

Observation (CEACR) - adopted 1995, published 83rd ILC session (1996)

1. The Committee notes the Government's report for the period ending June 1994. It notes that most of the period was characterized by a low rate of economic growth, the continued decline in total employment and a rise in the unemployment rate, which flattened out at over 12 per cent in 1993 and 1994, in comparison with 11.2 per cent in 1992. According to OECD estimates, the livelier growth of the economy as of 1994 should make it possible to reduce the unemployment rate to 10.6 per cent in 1995.

2. The Government emphasizes that the reduction in the level of unemployment and the improvement of the employment situation have been among its very highest priorities since it entered office in January 1993. In this respect, it refers to the implementation of an expansionist fiscal policy in order to stimulate economic activity and promote employment, without jeopardizing sound economic development. In this context, it refers to the reform of income tax, public investments in infrastructure, initiatives to support entrepreneurs and strengthen research and development activities, and the creation of additional places in education and training, particularly in the field of further training for adults. The Committee would be grateful if the Government would continue supplying information on the manner in which the principal strategies of economic policy contribute to the pursual of employment objectives.

3. The Government also considers that the active labour market policy measures adopted have not been sufficient, for which reason it has commenced a reform with a view to harmonizing and decentralizing such measures as of January 1994, particularly through the adoption of the consolidation Act respecting the active labour market policy, which emphasizes the early identification of persons who are particularly threatened by long-term unemployment and a more effective individualized follow-up for jobseekers. The Act on leave is intended to promote temporary withdrawals from the labour market through training leave, parental leave and sabbatical leave with a view to a better distribution of employment, while at the same time contributing to the improvement of the skills and living standards of workers. The Committee requests the Government to indicate the extent to which the implementation of these provisions has resulted in the creation of new jobs.

4. The Committee notes the changes in the procedures for the consultation of the persons affected by employment policies. It notes the establishment under the Ministry of Labour of a Labour Market Council, the advisory competence of which is extended to the formulation and follow-up of all labour market policy measures. The Committee also notes the establishment of the Training Council, with responsibility for submitting proposals to the Minister of Labour concerning law and policy in this field. The Committee requests the Government to provide information in its next report on the opinions issued by these advisory bodies, and to transmit any relevant examples of reports or recommendations that they have adopted.

Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

1. The Committee notes the Government's report for the period ending June 1992 and the detailed information which it includes in reply to its previous observation. It notes that the weak growth in production has been accompanied by a decrease in total employment over the period, while the OECD's standardized unemployment rate, which was 9.7 per cent in 1990, continued to increase to 10.6 per cent in 1991 and 11.1 per cent in 1992.

2. The Government states that the persistence of a high rate of unemployment has led it to give high priority to employment policy and new initiatives to combat unemployment. The report contains a detailed description of the measures taken to further strengthen the labour market policy measures which had already been implemented and the Government considers that it is now necessary to undertake a more long-term reform of the basic structures of the labour market. The Government also considers that the employment policy must not be in conflict with the pursual of other objectives, including combating inflation and maintaining a strict finance policy and a continued surplus of balance of payments. In this respect, its objective is to establish an economic environment which encourages trade and industry and the improved competitiveness of enterprises as an indispensable prerequisite to the growth of production and employment. The Committee notes these general economic policy objectives and observes that they appear to have been broadly achieved in terms of maintaining domestic and external financial balances, but that the employment situation has continued to worsen, as shown by the data referred to above.

3. The Committee notes all the information supplied in reply to its previous comments concerning active labour market policy measures. It notes that the Government considers that the results achieved by the job offer scheme have not been satisfactory. The Committee notes in this respect the new provisions introduced in the context of this scheme, and the creation of new forms of leave from the labour market in the context of the series of employment policy measures adopted in June 1992. It would be grateful if the Government would continue to supply detailed information on the results achieved by each of these measures. The Committee also notes that the Government intends to introduce a more basic reform of measures to combat unemployment, accompanied by a reform of the unemployment benefits system. In this connection, the Commitee draws the Government's attention to the Employment Promotion and Protection against Unemployment Convention (No. 168) and Recommendation (No. 176), 1988, which contain valuable indications as to how the unemployment protection scheme can be coordinated with employment policy.

4. With reference to its previous observation, the Committee also notes that, in the context of a complaint alleging violation of the principles of freedom of association (Case No. 1641), the Danish Confederation of Professional Associations (AC) referred, in its communication dated 15 April 1992, to the provisions of the Convention. The complainant organization considers that Act No. 929 of 27 December 1991 to amend the Consolidated Act on Job Offers for Unemployed Persons, which establishes a maximum hourly rate for jobs in the public sector offered as part of the job offer scheme, ignores "the mutual relationships between employment objectives and other economic and social objectives" which, under the terms of Article 1, paragraph 3, of the Convention, have to be taken into account in the employment policy. The AC, which also refers to the principle of proportionality in a later communication, dated 5 November 1992, considers that the protection of collective agreements which are in force forms part of the economic and social objectives which, in accordance with Convention No. 122, should not be violated by the employment policy. The Government states in its report that the establishment of a wage ceiling for the jobs offered in the job offer scheme in the public sector is intended to encourage the unemployed to seek work by themselves and to increase the number of job offers in the private sector, which has demonstrated that it provides better prospects of permanent employment.

5. While emphasizing that it is for the Committee on Freedom of Association to rule on the principal allegation of interference with the provisions of collective agreements, the Committee notes that the provision of Act No. 929 covered by the complaint deals with the remuneration of the long-term unemployed who accept a temporary job in the public sector for a maximum duration of seven months. It also notes that this system of job offers and remuneration is not in any event to result in the dismissal of regular employees. The Committee considers that, under these conditions, temporary employment measures to encourage the integration of the long-term unemployed into the labour market are not in themselves contrary to the provisions of the Convention. The Committee, considers, however it should emphasize that it is the responsibility of the Government to ensure that the temporary nature of the jobs which are offered is observed in practice, both in the public and private sectors, in order to ensure that the measure does not deviate from its objective and that it is not used as a measure to fill permanent jobs. Finally, it draws attention to the relevant provisions (Parts III and VIII of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), which includes the recommendation to hold full and timely consultations on the formulation, application and monitoring of such programmes between the competent authorities and the organizations of employers and workers concerned.

Observation (CEACR) - adopted 1993, published 80th ILC session (1993)

The Committee notes the allegations made by the Danish Confederation of Professional Associations (AC) in the context of a complaint on violation of freedom of association (Case No. 1641).

This case concerns alleged interference with the contents of conditions of work contained in collective agreements through the enactment of legislation amending the Consolidated Act on Job Offers for Unemployed Persons. In several communications under this complaint, most recently on 24 February 1993, the workers' organization has referred to Convention No. 122, and in particular to its Article 1, paragraph 3, according to which the employment policy shall take due account of the mutual relationships between employment objectives and other economic and social objectives; it stresses that the promotion of employment by a programme of assistance to the unemployed may not be interpreted as allowing other ILO Conventions to be undercut.

The Committee notes that the Government's report this year on the application of the Convention deals extensively with programmes provided for under the Act mentioned in the complaint. As the Government has not yet had time to respond to the latest communication from this workers' organization, the Committee proposes to defer the examination of specific questions until it examines the Government's report at its next session.

Observation (CEACR) - adopted 1991, published 78th ILC session (1991)

1. The Committee takes note of the Government's report for the period ending 30 June 1990.

2. In the past few years, labour market policy has been redefined to place emphasis on "active" measures directed towards market flexibility and workers' skills rather than "passive" measures to assist the unemployed as formerly. It has none the less been influenced by the economic policy which the Government deemed necessary to reduce the budget deficit and redress the balance of payments. Since 1988, Parliament has concentrated on structural labour market problems, particularly as regards wage policy, the unemployment insurance system, inequality in unemployment and the training and further training requirements of certain categories of workers.

3. These new approaches are reflected in a number of amendments that were adopted in 1989-90 following tripartite negotiations, to the legislation on the public employment service and the unemployment insurance system (with the aim, inter alia, of developing private placement activities), on measures to create jobs for young people (which are now decentralised and simplified) and on training and apprenticeship places (the responsibility is transferred to the vocational training schools). The Committee notes in particular, among the "active" labour market policy measures, the job offer scheme which is designed to combat long-term unemployment by offering temporary work to the unemployed; this scheme was revised in 1989 and provides entitlement to training. As regards workers already in employment, the Government attaches great importance to further training in view of the technological developments and demographic factors.

4. The Committee notes from the information supplied by the Government, supplemented by the information available at the ILO or contained in the OECD documents, the persisting trend towards relatively high unemployment. Since its observations of 1989 and 1990, the overall unemployment rate has risen from 7.9 per cent in 1986-87, to 8.6 per cent in 1988, reaching approximately 10 per cent in 1990. Long-term unemployment remains the most difficult problem and largely concerns low-skilled workers. It can be noted from the recent OECD economic survey that stabilising inflation seems to require a rather high unemployment rate.

5. The Committee would be grateful if the Government would continue to provide information regularly on the implementation of the active labour market policy. It would be particularly grateful if the Government would provide data, as far as is possible, permitting an evaluation of the impact of the job offer scheme on long-term unemployment, the effects of the measures to decentralise employment promotion, or of the liberalisation of placement activities, while maintaining a public employment service that operates in accordance with the relevant rules. More generally, the Committee would be grateful if the Government would situate the employment policy within the overall economic policy, indicating the priorities granted to the objectives of growth, full employment, and the control of inflation and balance of payments, respectively.

Observation (CEACR) - adopted 1990, published 77th ILC session (1990)

The Committee notes the brief report of the Government received during the present session. It notes, according to figures published by the OECD, that total employment fell in 1988 and that the unemployment rate rose from 7.9 per cent in 1986-87, to 8.6 per cent in 1988 and was expected to exceed 9 per cent in 1989. Referring also to its 1987 observation, the Committee hopes the Government will supply a detailed report for examination at its next session, containing the information specifically requested by the report form for the Convention on the principal policies pursued and measures taken with the aims of the Convention as to full and productive employment as a major goal in mind.