Denmark’s ministry of employment has estimated that as many as 23,000 Danes will lose their unemployment benefits before the summer.
The figures come less than two weeks after major changes to the Scandinavian country’s so-called ‘dagpenge’ unemployment system went into force. The ministry had previously estimated that only 7,000 and 12,000 workers would lose benefits, but those figures nearly doubled on Monday.
Under the new rules, the length of time dagpenge benefits can be claimed for was cut in half to only two years.
The Finance and Employment Ministries official report read, “The increased number reflects the fact that fewer people left the dagpenge system in the autumn compared with earlier,” the Copenhagen Post reported on Friday.
In response to the changes, some ministers are urging Copenhagen to take further steps to ensure that there is minimal impact on the affected unemployed workers.
Choosen excerpts by Job Market Monitor from
The Danish model of mixing flexibility for employers, who can hire and fire personnel easily, with social security for workers, was credited with virtually eradicating unemployment in the Nordic nation, before the financial crisis hit.. The system differs markedly from those in neighbouring Sweden and Germany, where terminating an employee is often expensive and cumbersome. …Continue reading »