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Approaching youth unemployment in Denmark: Focus on education 13 May 2015 Ida Synnestvedt Head of Section Ministry of Employment - Denmark. Key figures - Denmark. Population 5.7 million Labour force: 2.9 million Unemployment (December 2014) All age groups
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Approaching youth unemployment in Denmark: Focus on education13 May 2015Ida SynnestvedtHead of SectionMinistry of Employment - Denmark
Key figures - Denmark Population • 5.7 million • Labour force: 2.9 million Unemployment (December 2014) All age groups • Benefit recipients in total: 246,000 • Ready for a job: 129,00 Age 16-29 • Benefit recipients in total: 72,800 • Ready for a job or an education: 30,300
Ministry of Employment 27 unemployment insurance funds Danish Agency for Labour Market and Recruitment - 3 decentralized labour market offices Government 98 Municipalities 94 integrated job centres for all job seekers - Full responsibility of the municipality 98 social welfare offices Youth Guidance Centres December 19, 2019
The Danish approach to youth unemployment - keywords • Active labour market policies • Early intervention / activation and individually tailored efforts • Focus on education and upgrading of skills and qualifications • Social safety net / income security (cash benefits and unemployment insurance) • Since 2014: An explicit focus on young persons under the age of 30
The cash benefit reform • Entry into force on 1 January 2014 • Explicit focus on young people by dividing unemployed persons into 2 categories: • Unemployed under the age of 30 without an ordinary education • Unemployed above the age of 30 (and those under 30 with an education)
Education: The key to labour market integration • Young persons under the age of 30 receive an education offer (compulsory to accept) • As not all young persons have the same prerequisites, they are divided into three groups: • Clearly ready for education • Ready for education within one year • Ready for activation (i.e. not ready for education within one year)
Final visitation after 3 months Thorough visitation 1. Contact with the job centre 1. Interview after one week A. Education offer Ready for education B. reading, writing & calculating test. Upgrading of skills if necessary. Ready for activation C. Initiative Continuous follow up Clearly ready for education In special circumstances ready for activation
Activation measures – young persons ready for education within one year • Upgrading of skills and qualifications • Short internships in educational centres • Mentoring • Practical work training in enterprises
Activation measures – young persons ready for activation • Coordinating caseworker at the job centre • Close and regular follow-up • Upgrading of skills and qualifications • Short internships at educational centres • Mentoring • Practical work training in enterprises
Positive effects from mentoring • Effect evaluation based on an experiment in 13 municipalities in 2012-2013 • 2,593 young persons ready for activation* participated • Half the participants met with a mentor 1,5 hours per week, the other half did not • After one year, 16% of the participants with mentor support had enrolled in an educational programme • Only 12% of the participants without mentor support had enrolled in an educational programme * Before the entry into force of the cash benefit reform in 2014, the term ”ready for activation” did not exist, the equivalent was ”match group 2”.
Building bridge to education • Cross-sectoral initiative: The young unemployed persons receive activation offers at a VET institution • Upgrading of basic skills in reading, writing and calculating • Enterprise training • Short internships at different VET educations • Mentor for all young persons through the entire period • Effect evaluation shows positive results
Economic incentives to begin an education • The cash benefit reform has changed the benefit system for young persons without an ordinary education. • Benefits for this group are called ”education benefits” • Benefits reduced to the same level as the state educational grant (SU) • Cash benefits:1,450 Euros - education benefits:800 Euros • Young persons ready for activation entitled to a supplement raising the amount to the equivalent of cash benefits