April 27, 2018
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Denmark is on a clear first place in the EU when it comes to getting unemployed quickly back to work. This is due to great flexibility and short notice warnings, believes labor market researcher.
Four out of ten Danes who were unemployed in the second quarter of 2017 were in work again the following quarter.
It shows new figures from Statistics Denmark, which 3F has counted on.
With 40 percent fast back in jobs, Denmark is at the top of all EU countries for which there are numbers. Most other EU countries are between 10 and 30 percent.
The figures are not behind labor market researcher and Professor Emeritus at Aalborg University, Per Kongshøj Madsen. The Labor Movement's Business Council, where Per Kongshøj Madsen is chairman, has previously shown that Denmark has the most flexible labor market in the EU and is number six in the world.
- The figures reflect that we have high mobility in and out of the labor market. The special thing in Denmark is that companies have low barriers to hiring and firing people, while having an active labor market policy, he says.
Per Kongshøj Madsen believes that especially the relatively short notice warnings in Denmark are crucial:
- Within the construction, for example, the notice of termination is only a few days. In other countries, the trap is harder when the employer hires people, he explains.
Savings in the model
In 3F, Chief Economist Frederik I. Pedersen agrees.
"We have a very dynamic labor market, where people can easily get rid of businesses if businesses are missing orders. Conversely, they dare to hire people when they get orders again, he says.
But at the same time, Frederik I. Pedersen believes that Denmark's leadership can be threatened.
- Because it is sown well and thoroughly in our Danish model. There has been a shorter unemployment benefit period and other impairments in the unemployment benefit system. The erosion of unemployment benefits will continue in the coming years, and it can threaten flexibility, he says.
"An increased imbalance between security and flexibility can put the model under pressure, for example, requiring longer notice warnings or fires, and it will provide a less dynamic labor market," says 3F's chief economist.
Not enough education
Per Kongshøj Madsen does not think the most important thing is whether you can receive unemployment benefits in two, four or six years.
"The crucial thing is to get a new job quickly, and this is done through active employment efforts with conversations, job training and education. I can be worried if the active effort is good enough, he says.
The figures in the graph show how many of them were affected by unemployment in Q2 2017, who were in work again in the third quarter of 2017.
