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Harnessing an Entrepreneurial Spirit for Inclusive Local Employment

Harnessing an Entrepreneurial Spirit for Inclusive Local Employment Taking Forward the Local in Lisbon 25 April 2008 The Danish Employment Policy Jan Hendeliowitz Director Employment Region Copenhagen & Zealand The National Labour Market Authority Denmark. Facts about Denmark.

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Harnessing an Entrepreneurial Spirit for Inclusive Local Employment

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  1. Harnessing an Entrepreneurial Spirit for Inclusive Local Employment Taking Forward the Local in Lisbon 25 April 2008 The Danish Employment Policy Jan Hendeliowitz Director Employment Region Copenhagen & Zealand The National Labour Market Authority Denmark 080425-Brussels

  2. Facts about Denmark • Total population 5.4 million • Work force 2.9 million • Employed people 2.8 million • Employment rate 76.8 % • Unemployment rate 2.1 % • Youth unemployment 1.9 % • source: www.jobindsats.dk (Statistics Denmark) 080425-Brussels

  3. Employment Regions in Denmark North Jutland Employment Region 0.6 million Central Jutland Employment Region 1.2 million Copenhagen and Zealand Employment Region 2.4 million South Denmark Employment Region 1.2 million 080425-Brussels

  4. Unemployment rates in Denmark, EU and OECD 1991-2007 Source: OECD 080425-Brussels

  5. Youth unemployment Unemployment rates in the 15-30 age range in Denmark, EU-15 and OECD, 1991-2006 Source: OECD 080425-Brussels

  6. - 3000 USD a month before tax The main axis of the flexicurity model Flexible labour market The qualification effect of the LMP Generous welfare schemes Active LMP Motivational effects of LMP The Danish Flexicurity Model Limited degree of employment protection and high job mobility - 800,000 or circa 30 % of all Danish wage earners change their jobs each year - 20% of the work force experiences unemployment each year Activation is both a right and an obligation High compensation rates - In Denmark 1.7 % of GDP is spent on active measures and 2.5 % on passive measures 080425-Brussels

  7. Denmark Belgium Netherlands Germany Finland Sweden France Spain Norway Ireland Italy Luxembourg Australia Canada United Kingdom Japan Czech Republic United States Korea 0 1 2 3 4 5 Expenditure as share of GDP (%) Active measures Passive measures Expenditure on labour market policy 080425-Brussels Source: OECD – Employment outlook 2007

  8. 10 100 8 80 6 60 4 40 2 20 0 0 Italy Italy Spain Spain Ireland France Ireland Turkey France Austria Finland Greece Austria Greece Sweden Sweden Belgium Portugal Hungary Bulgaria Hungary Portugal Denmark Denmark Germany Germany Netherlands Luxembourg Netherlands Luxembourg United Kingdom United Kingdom Perception of job security & satisfaction Job security Scale from 1 to 10, from low to high job security Job satisfaction Percentage of those employed who are satisfied or very satisfied with their jobs Source: European Opinion Research Group EEIG (2001) Source: European Foundation for the Improvement of Living and Working Conditions (2006) 080425-Brussels

  9. A flexible labour market with low employment protection and high job mobility A generous welfare system with high income security An active labour market policy Collective agreements between the parties in the labour market Dynamic legislative process – regular review and revision The main elements of the flexicurity model 080425-Brussels

  10. Characteristics of the labour market policies of the four regimes Source: Medium Term Economic Outlook, Danish Ministry of Finance, 2004:12. 080425-Brussels

  11. Employment/population ratios, labour force participation rates and unemployment rates 2006 080425-Brussels

  12. Total hours worked annually per person of working age 2005 Source: OECD 2007 080425-Brussels

  13. The National Employment Council Minister for Employment Sets the focus areas and objectives of the employment effort National Labour Market Authority Contract 4 Employment Regions Responsible for supervision of the labour market etc. Supervision of effects and outcomes etc., including follow-up of the Minister's objectives Regional operational units 4 regional employment councils Approves the States part of the performance audit and the employment plan Supervision and follow-up of the effects and outcomes of the job centres’ total employment effort 77 job centres 14 pilot job centres State service 91 local employment councils Municipal service Municipal service The municipal councils approve the performance audit and the employment plan for their own job centres. In each job centre the state and the municipality share the responsibility for the employment effort. In the pilot job centres the municipal council alone approves the performance audit and the employment plan. The political and institutional set-up of the Employment Service National level Regional level Local level 080425-Brussels

  14. Analysis of the labour market situation Analysis reports compiled by the Employment Regions and the Regional Employment Councils Employment plan The final employment plan is sent to the Regional Employment Council National targets The Minister announces the national targets and focus areas for next year October - December Jan - March Regional targets The targets are specified in a contract between the Minister, the Employment Regions and the Regional Employment Councils Juli - September April - June Follow up and supervision Regular follow-up of the job centres performance by the employment regions Local targets The job centres involve the Local Employment Councils in the process of setting the local targets for the coming year The planning and monitoring processin Job Centres 080425-Brussels

  15. The national performance targets for 2008 set by the Minister of Employment • Performance target 1: • Decrease in the number of unemployed people over 3 months. • Performance target 2: • Focus on people who have been unemployed for more than a year, as well as the targets set under the national initiative known as ”A New Chance For Everyone”. These targets are: • 25 per cent will enter employment or training • The target group will be self-supporting 15 per cent of the time • The target group will be participating in an activation scheme 40 per cent of the time. • Performance target 3: • Decrease in the number of unemployed young people (i.e. those under 30) 080425-Brussels

  16. The Employment Regions closely follow up the performance outcomes being pursued in the job centres Quarterly analysis reports are compiled by the Employment Regions on the basis of the overall national and regional targets The reports contain an assessment of the effects and outcomes achieved by the respective Employment Regions, plus a benchmarking of the individual job centres Dialogue meetings concerning outcomes are held with the Job Centres twice a year or more Follow-up procedures 080425-Brussels

  17. Example of benchmarking of Job Centres The proportion of the target group of long-term unemployed on social welfare ”A New Chance for Everyone” that is self-supporting, 3rd quarter of 2007 Source: Effects of employment efforts in the EasternDenmark Employment Region, 3rd quarter of 2007 080425-Brussels

  18. Example of benchmarking of Job Centres The development in the number of unemployed young people in the period September 2006 – September 2007 Source: Effects of employment efforts in the EasternDenmark Employment Region, 3rd quarter of 2007 080425-Brussels

  19. The Job Centres Have a high degree of freedom in planning and implementing their employment initiatives and activities Are obliged to focus on outcomes, and to achieve results which contribute to the realization of the national and regional outcome performance The Employment Regions Are responsible for ensuring coherence between the local initiatives and the National Employment Policies Follow up the performance outcomes of the employment measures being pursued in the job centres The Minister of Employment Sets the national targets and focus areas In summary: 080425-Brussels

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