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

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

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.