Editing Economy of Denmark (section)

==Labour market and employment==

The Danish labour market is characterized by a high degree of [[union membership]] rates and [[collective agreement coverage]] dating back from ''Septemberforliget'' (The September Settlement) in 1899 when the [[Danish Confederation of Trade Unions]] and the Confederation of Danish Employers recognized each other's right to organise and negotiate. The labour market is also traditionally characterized by a high degree of [[flexicurity]], i.e. a combination of [[labour market flexibility]] and economic security for workers.<ref>{{cite web| url = https://www.star.dk/en/about-the-danish-agency-for-labour-market-and-recruitment/flexicurity/| title = Flexicurity |website=The Danish Agency for Labour Market and Recruitment |access-date=23 November 2018}}</ref> The degree of flexibility is in part maintained through [[active labour market policies]]. Denmark first introduced [[active labour market policies]] (ALMPs) in the 1990s after an economic recession that resulted in high unemployment rates.<ref>{{Cite web|url=https://eh.net/encyclopedia/an-economic-history-of-denmark/|title=An Economic History of Denmark|website=eh.net|access-date=2 August 2019}}</ref> Its labour market policies are decided through tripartite cooperation between employers, employees and the government.<ref name=":0">{{Cite journal|last1=Jespersen|first1=Svend T.|last2=Munch|first2=Jakob R.|last3=Skipper|first3=Lars|date=2008|title=Costs and benefits of Danish active labour market programmes|url=http://web.econ.ku.dk/jrm/PDFfiles/JespersenMunchSkipper2008.pdf |archive-url=https://web.archive.org/web/20190802063730/http://web.econ.ku.dk/jrm/PDFfiles/JespersenMunchSkipper2008.pdf |archive-date=2019-08-02 |url-status=live|journal=Labour Economics|volume=15|issue=5|pages=859–884|doi=10.1016/j.labeco.2007.07.005}}</ref> Denmark has one of the highest expenditures on ALMPs and in 2005, spent about 1.7% of its GDP on labour market policies.<ref>{{Cite web|url=https://www.oecd.org/employment/leed/40575308.pdf |archive-url=https://web.archive.org/web/20150616065533/http://www.oecd.org/employment/leed/40575308.pdf |archive-date=2015-06-16 |url-status=live|title=Danish Employment Policy|last=Hendeliowitz|first=Jan|date=February 2008|website=Employment Region Copenhagen & Zealand The Danish National Labour Market Authority}}</ref> This was the highest amongst the [[OECD]] countries. Similarly, in 2010 Denmark was ranked number one amongst Nordic countries for expenditure on ALMPs.<ref>{{Cite journal|last=Greve|first=Bent|s2cid=14300043|date=2012|title=Denmark a Nordic Welfare State – Are the Active Labour Market Policy Withering Away?|journal=The Open Social Science Journal|volume=5|pages=15–23|doi=10.2174/1874945301205010015|doi-access=free}}</ref>

Denmark's [[active labour market policies]] particularly focus on tackling [[youth unemployment]]. They have had a "youth initiative" or the Danish Youth Unemployment Programme in place since 1996.<ref>{{Cite web |title=Youth unemployment policies: Review of the Danish Youth Unemployment Programme and the British New Deal for Young People |website=Mutual Learning Employment |url=http://pdf.mutual-learning-employment.net/pdf/en9908.pdf |archive-url=https://web.archive.org/web/20111216005830/http://pdf.mutual-learning-employment.net/pdf/en9908.pdf |archive-date=2011-12-16 |s2cid=8717167}}</ref> This includes mandatory activation for those unemployed under the age of 30. While unemployment benefits are provided, the policies are designed to motivate job-seeking. For example, unemployment benefits decrease by 50% after 6 months.<ref>{{Cite web|url=https://star.dk/en/active-labour-market-policy-measures/tackling-youth-unemployment-in-denmark/|title=Tackling youth unemployment in Denmark|website=Danish Agency for Labour Market and Recruitment|access-date=2 August 2019|archive-date=2 August 2019|archive-url=https://web.archive.org/web/20190802063731/https://star.dk/en/active-labour-market-policy-measures/tackling-youth-unemployment-in-denmark/|url-status=dead}}</ref> This is combined with education, skill development and work training programs. For instance, the Building Bridge to Education program was started in 2014 to provide mentors and skill development classes to youth that are at risk of unemployment.<ref name="Building Bridge to Education">{{Cite web|url=https://star.dk/en/active-labour-market-policy-measures/tackling-youth-unemployment-in-denmark/building-bridge-to-education/|title=Building Bridge to Education|website=Danish Agency for Labour Market and Recruitment|access-date=2 August 2019|archive-date=2 August 2019|archive-url=https://web.archive.org/web/20190802063733/https://star.dk/en/active-labour-market-policy-measures/tackling-youth-unemployment-in-denmark/building-bridge-to-education/|url-status=dead}}</ref> Such [[active labour market policies]] have been successful for Denmark in the short-term and the long-term. For example, 80% of participants in the Building Bridge for Education program felt that "the initiative has helped them to move towards completing an education".<ref name="Building Bridge to Education"/> On a more macro scale, a study of the impact of ALMPs in Denmark between 1995 and 2005 showed that such policies had positive impact not just on employment but also on earnings.<ref name=":0" /> The effective compensation rate for unemployed workers has been declining for the last decades, however. Unlike in most Western countries there is no legal [[minimum wage]] in Denmark.

A relatively large proportion of the population is active on the labour market, not least because of a very high female participation rate. The total participation rate for people aged 15 to 64 years was 78.8% in 2017. This was the 6th-highest number among OECD countries, only surpassed by Iceland, Switzerland, Sweden, New Zealand and the Netherlands. The average for all OECD countries together was 72.1%.<ref>{{cite web| url = https://stats.oecd.org/Index.aspx?DataSetCode=LFS_SEXAGE_I_R#| title = LFS by sex and age – indicators: Labour force participation rate. OECD statistics. |access-date=23 November 2018}}</ref>

According to [[Eurostat]], the unemployment rate was 5.7% in 2017. This places unemployment in Denmark somewhat below the EU average, which was 7.6%. 10 EU member countries had a lower unemployment rate than Denmark in 2017.<ref>{{cite web| url = http://ec.europa.eu/eurostat/web/lfs/data/database| title = Eurostat Employment and Unemployment Database, Table une_rt_a. Unemployment by sex and age – annual average. Last update 31 October 2018.}}</ref>

Altogether, total employment in 2017 amounted to 2,919,000 people according to Statistics Denmark.<ref>{{cite web| url = http://statistikbanken.dk/nan1 |website=StatBank Denmark |title=Table NAN1: Demand and supply by price unit, transaction and time. |access-date=23 November 2018}}</ref>

The share of employees leaving jobs every year (for a new job, retirement or unemployment) in the private sector is around 30%<ref>{{in lang|da}}[https://di.dk/personale/loen/nyheder/pages/personaleomsaetning2017flereskifterjob-isaeriserviceerhverv.aspx "Personaleomsætning 2017: Flere skifter job – især i serviceerhverv". Confederation of Danish Industry, 18 June 2018.] {{Webarchive|url=https://web.archive.org/web/20181116220040/https://di.dk/personale/loen/nyheder/pages/personaleomsaetning2017flereskifterjob-isaeriserviceerhverv.aspx |date=16 November 2018}}</ref> – a level also observed in the U.K. and U.S.- but much higher than in continental Europe, where the corresponding figure is around 10%, and in Sweden. This attrition can be very costly, with new and old employees requiring half a year to return to old productivity levels, but with attrition bringing the number of people that have to be fired down.<ref>{{in lang|da}} [http://www.business.dk/article/20080729/okonomi/80729003/ Hyppige jobskift koster milliarder] {{webarchive|url=https://web.archive.org/web/20080730125033/http://www.business.dk/article/20080729/okonomi/80729003/ |date=30 July 2008}}</ref>