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

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

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.