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Denmark was hit harder by the global financial crisis than its neighbouring countries and the OECD area, but is now slowly recovering. In the first quarter of 2016, the employment rate was still 4.8 percentage points lower than before the GFC with only minor improvement since 2013.
Encouraging more people to continue to work later in life would help Denmark meet the challenges of its rapidly ageing population. The ratio of the population aged 65 and over to the working-age population is projected to increase from 30% in 2012 to 43% in 2050, according to a new OECD report.
Given the ageing challenges, there is an increasing pressure in OECD countries to promote longer working lives. This report provides an overview of policy initiatives implemented in Denmark over the past decade. Even if these recent reforms are well in line with the recommendations of the 2005 OECD report Ageing and Employment Policies: Denmark, the focus has been put mainly on the supply side. The aim of this new report is to identify what more could be done to promote longer working lives. As a first step, the government should assess closely the implementation process to ensure that the expected outcomes of the reforms are achieved. More broadly, the strategy should act simultaneously in three areas by: i) strengthening incentives to carry on working; ii) tackling employment barriers on the side of employers; and iii) improving the employability of older workers.
Surveys suggest that Denmark ranks close to or slightly above the OECD average in terms of student and adult skills, even though Denmark spends more than many OECD countries on education, labour market policies and adult learning. Sluggish productivity growth over the past two decades raises the question of how to develop better skills and use them more efficiently to achieve stronger and more inclusive growth.
Two rounds of the Survey of Adult Skills are under way: Round 1 (2008-13) with 24 participating countries, whose results were released in October 2013, and Round 2 (2012-16) with 9 participating countries, whose results will be released in 2016. A third round is scheduled to begin in May 2014.
Tackling mental ill-health of the working-age population is becoming a key issue for labour market and social policies in OECD countries. OECD governments increasingly recognise that policy has a major role to play in keeping people with mental ill-health in employment or bringing those outside of the labour market back to it, and in preventing mental illness. This report on Denmark is the third in a series of reports looking at how the broader education, health, social and labour market policy challenges identified in Sick on the Job? Myths and Realities about Mental Health and Work (OECD, 2012) are being tackled in a number of OECD countries. It concludes that the Danish system has a number of strengths that have yet to be used in a more effective way, but also that quite a few changes are needed in order to raise the labour market particiption of people with mental ill-health.
Ongoing reforms of Denmark’s disability benefits and flexjobs are promising, but a stronger focus on helping people with their mental health issues is needed for the reforms to contribute to a sustainable decline in the high rate of unemployment, according to a new OECD report. Past labour market reforms failed because underlying mental health problems of the jobless remained unaddressed.
This report presents, for the first time a local ‘green growth’ indicator framework. This indicator framework was developed from the OECD ‘green growth’ strategy at the national level, but modified to highlight issues of transition that are most relevant for local areas.
A few high-growth enterprises are responsible for the majority of local job creation
Human resources and skills are becoming increasingly important to economic development. In the context of the economic downturn, challenges such as high youth unemployment call for a collaborative and tailored approach.