The Three Elements of Flexicurity

Flexible labour market Social security system Employ ment and training policy

Employment Security

Scale from 1-10 – the higher the number the more secure, 2001 9 8 1 0 3 2 5 4 7 6 (3,9) (4,8) (3,9) (7,0) (8,4) (7,7) (8,2) (4,4) (5,3) (6,8) (9,4) (8,6) (7,7) (8,9) 9 8 1 0 3 2 5 4 7 6 DK AT NL SE DE FI BE IE UK IT FR ES PT GR NOTE: Figures in brackets are unemployment rates in 2006.

SOURCE: CEPS (2004) and Eurostat.

Job Satisfaction

100 Per cent of employed, 2006 90 80 70 60 70 60 50 DK NO UK CH AT BE DE NL IE LU SE PT FI FR ES IT EL NOTE: The figures show the rate of employed who are satisfied or very satisfied with their occupation.

SOURCE: EFILWC (2007).

50 100 90 80

100

Is Globalisation a Threat or an Opportunity

Globalisation represents an opportunity Globalisation represents a threat 100 50 0 -50 -100 50 0 -50 -100 DK SE NL UK IE FI IT ES DE PT BE AT SOURCE: The European Commission

Special Eurobarometer, The Future of Europe,

May 2006.

GR FR

8 6 4 12

Average Job Tenure

Years 10 SOURCE: OECD (2004) and Eurostat (2005).

8 6 4 12 10

4

Labour Market Regulation

Index, the lower the number the less regulation, 2003 3 2 1 1 0 UK IE DK AT IT FI NL BE DE SE GR FR ES PT 0 4 3 2 SOURCE: OECD, 2004.

Regulation and Unemployment

12 Unemployment, per cent 2003 GR 9 IT FI DE BE US 6 3 UK IE DK JP AT SE NL 12 ES FR Estimated line 9 PT 6 3 0 0 1 Employment regulation index 2003 0 2 NOTE: A high number reflects tight regulations.

SOURCE: OECD (2004) 3 4

Flexibility in Wage Setting

Per cent of employees where wages are negotiated: Centrally Locally 16 34 66 1989 NOTE: DA/LO area.

SOURCE: DA.

84 2005

Flexibility in Working Hours

The 37 hours of work per week is calculated as an average over: No flexibility 3 weeks – 6 months 6 months to 11 months 7 Share of employed In 1998 24 13 per cent In 2004 2 7 15 1 year or more 56 77 NOTE: The figures represents collective agreements for approximately 90 per cent of the employees at the DA/LO area.

SOURCE: DA.

18 12 6 0

Mobility in the Wage Distribution

Per cent of employees in 1st wage decile who are 36 in a higher wage decile 1 year after. 1999-2000.

30 24 36 30 24 6 0 18 12 SOURCE: European Commission, 2003.

40 30 20 10 0 Participation in Continuing Education 50 Per cent of employed, 2003 50 40 30 20 10 0 NOTE: Covers non-formal job-related continuing education and training over the previous 12 months.

SOURCE: OECD (2006).

Educational Costs at Company Level

3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 Per cent of total labour costs for educational training in private companies, 1999 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 SOURCE: Eurostat (2002).

Educational Attainment

60 Per cent of labour force (25-64 year-olds) with higher education Israel Canada USA Japan Finland Sweden Belgium Denmark Norway Australia Ireland Holland Korea UK Spain Switzerland Island Germany Luxembourg France New Zealand Israel Canada Japan Korea Belgium USA Finland Sweden Ireland Norway Spain Australia UK Denmark France Holland Island Switzerland Luxembourg New Zealand Germany 50 40 2004 30 20 SOURCE: OECD and FN.

10 0 10 20 30 40 2020 50 60

People on public benefits 1,000 people, 2006 Unemployed Job training, rehabilitation, etc.

Parental leave Sickness benefit Early retirement (including 65-66 year old pensioners) Social assistance Flexjob (active and inactive) Disability pension 0 SOURCE: Statistics Denmark.

50 100 150 200 250 Employabl e Less employable

Low Availability of Unemployed

50 40 30 20 10 0 Per cent of unemployed, 2005 Do not wish to work Do not seek work 15-24 25-29 30-49 Not able to attend work 50-59 50 40 30 20 10 60-66 0 Years old SOURCE: Special report from Statistics Denmark.

Making Work Pay

 Incentives to work for the lowest paid are small  26 per cent of the unemployed gain less than 70 Euro/month if they get a job.

 12 per cent of the employed gain less than 70 Euro/month compared with the unemployment benefit.  5 per cent of the employed earn less than if they were unemployed.

SOURCE: Rockwool Foundation (2003).

5 4 1 0 3 2 Expenditure on Labour Market Measures Per cent of GDP, 2005 Active measures Total measures 5 4 1 0 3 2 SOURCE: OECD (Employment Outlook, 2007)

GDP per capita

160 140 120 100 80 60 40 20 0 EU-25=100 calculated in PPP, 2006 USA EU-25 Denmark SOURCE: OECD, 2007.

Japan 60 40 20 0 160 140 120 100 80

12 10 8 6 4 2 0

Unemployment

Per cent Japan USA EU 15 Denmar k '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 12 2 0 6 4 10 8 SOURCE: OECD (Employment Outlook, 2007).

100 80 60 40 20 0

Employment rate

1994 Per cent of 15-64 years old 2006 EU15 Denmark USA SOURCE: OECD (Employment Outlook 2007).

Japan 100 80 60 40 20 0

Population – Working Age

15-64 years old relative to entire population, index 2005=100 105 100 95 USA 105 100 95 90 85 80 75 90 Denmark Western Europe 85 80 Japan 75 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 SOURCE: UN, World Population Prospects, Medium variant.

Flexible Regulation in Denmark

 Main Characteristics  Basic principles established more than 100 years ago  Regulation at company-level through collective agreements  Disputes are handled by the two sides of industry solely

Employment Regulation

 Collective agreements the primary regulation:  Wages  Working time, overtime  Redundancies, shop stewards, extra holidays  Sickness pay, maternity leave, pension, training,  Legislation only on specific topics:  Holidays  Health and safety  Equal pay and equal treatment (sex, race, religion etc.)

Regulation by Framework Agreements

 Collective agreements cover aprox. 90 pct. of the employeed in companies affiliated to DA member federations  Framework agreements  Supplemented by agreements at company level

Collective Agreements and Legislation

 Legislation is built on and in respect of provisions in Collective Agreements  The Social Partners have the prerogative when implementing EU-Directives