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Municipal job activation in the firing line

Denmark has made municipalities solely responsible for job activation and employment projects for the unemployed in what has proved to be a very controversial reform.
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The Danish Job Activation Reform
  • From August this year Denmark's 98 municipalities carry the sole responsibility for active employment policies, both for people drawing unemployment benefits and those with unemployment insurance.
  • Municipalities were already responsible for people on unemployment benefits, while the state looked after people with unemployment insurance. Now the sole responsibility lies with the municipalities, but with strong state control.
  • The timing of starting a job activation process will be decided centrally, while the contents of the job activation programme will be decided locally. The quality of help for the unemployed will therefore vary according to where they live.
  • The state will refund the municipalities half of the costs of the job activation process. The refund will be reduced gradually, and it will be linked to how active job centres are in activating the unemployed.
  • The reform is a continuation of the municipal reform, which saw 275 municipalities merge into 98.
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