In a sweeping reform of the employment system, the Danish Government has announced plans to close all existing jobcentrene (job centers) as part of an effort to simplify the system and save 3 billion Danish kroner (approximately 400 million euros). This decision, which has been in the works for over two years, aims to overhaul one of the world’s most expensive employment systems by eliminating layers of bureaucracy and streamlining support for job seekers.
A comprehensive reform of the employment system
The reform, described by the government as “a big and comprehensive exercise,” marks the largest reorganization of the Danish employment system to date. At the heart of this initiative is the closure of the current jobcentrene, which have long been criticized for their complexity and inefficiency. The Government’s new plan is to replace them with a simpler, more flexible model that “leaves room to see the individual who comes in the door.”
Minister of Employment Ane Halsboe-Jørgensen (S) explained to DR:
“Today, we have built a huge and very cumbersome system that is difficult to navigate—for both Danes looking for work and the employees working in job centers.”
Key elements of the reform
The Government’s proposal includes several significant measures designed to cut costs and enhance local control:
- Cost savings: The reform is expected to save 3 billion Danish kroner by reducing bureaucracy and streamlining processes.
- Decentralized organization: Municipalities will gain the freedom to organize employment support services according to local needs.
- Reduction in mandatory measures: The plan proposes the removal of more than 500.000 mandatory meetings for citizens, significantly reducing the administrative burden.
- Less oversight for the sick: Citizens on sick leave will no longer be required to attend follow-up meetings with the municipality.
- Staff reductions: The proposal includes a recommendation to eliminate around 3.500 caseworkers.
An expert group, convened in the summer, provided six recommendations to reform the current system. They criticized the existing model for imposing too many requirements on citizens and caseworkers and for its excessive process demands.
Political reactions and broader implications
The reform has generated varied responses across Denmark’s political spectrum. While the Liberal Alliance has expressed cautious approval, its spokesperson, Sólbjørg Jakobson, noted:
“Reforming the employment system (which we strongly support) and cutting costs by about 25% is not the same as ‘closing job centers.’ Even if they are given a new name.”
On the other hand, Victoria Velasquez, employment spokesperson for Enhedslisten, sees the reform as a “huge opportunity”:
“If the cuts come from areas of distrust, sanctions, and surveillance—things that are both expensive and bureaucratic—then this is a real opportunity. We need to ensure the savings come from these areas.”
The decision to close the jobcentrene has been on the Government’s agenda for some time, with repeated references by Prime Minister Mette Frederiksen (S) in speeches, including her New Year’s address, emphasizing the need to dismantle the cumbersome system.
