The Danish Government, backed by a broad political majority, has unveiled a comprehensive reform of the country’s employment efforts (beskæftigelsesindsats), aiming to simplify the system and cut public spending by 2.7 billion DKK (approximately 362 million EUR).
The plan, presented by Minister for Employment Ane Halsboe-Jørgensen (Socialdemocrats), represents the most extensive overhaul of Denmark’s job placement and unemployment support system in decades. It follows criticism of the current model, often labelled the most expensive employment system in the world.
Jobcentres no longer mandatory, municipalities gain flexibility
Under the new agreement, municipalities will no longer be required to operate jobcentres. This move is expected to result in a significant restructuring of local employment services. The number of mandatory meetings between jobseekers and caseworkers will be slashed, and roughly half of all current regulations will be repealed. Additionally, nine out of ten sanction mechanisms will be eliminated.
The reform is predicted to reduce the total number of administrative consultations by around 500,000 per year, potentially leading to a reduction of up to 3,500 caseworkers.
Political support and opposition
The agreement was reached between the government and a coalition of parties, including De Radikale (The Social Liberal Party), Liberal Alliance, Dansk Folkeparti (Danish People’s Party) and De Konservative (The Conservative People’s Party). However, the Socialistisk Folkeparti (Socialist People’s Party, SF) withdrew from the negotiations on Tuesday. SF cited disagreements over the so-called “youth guarantee” and changes to unemployment insurance funds (a-kasser).
A simpler system for jobseekers
The overarching goal of the reform is to create a more straightforward and efficient experience for jobseekers, minimizing red tape and punitive procedures.
“This reform makes life easier for citizens and ensures better use of our shared resources,” said Halsboe-Jørgensen.
While the reform is expected to save billions in public spending, it also raises questions about service accessibility and support for vulnerable groups within the labour market. These aspects are likely to become central themes in the political and public debate as the new measures are implemented.
