Benefit system still a problem

Yesterday, Minister for Employment Mette Frederiksen (SocDem) received the newest figures on how many Danes have dropped out of the unemployment benefit system during the first benefit period of this year.

The Association of Danish Unemployment Funds published figures showing 5,270 persons have so far lost their right to unemployment benefit due to the benefit reform.

“The current situation regarding the unemployment benefit scheme is complicated. These figures are quite high, and whatever the statistics say, the individual is the one suffering,” Frederiksen told DR News.

Flawed assessment

The study also shows that the Ministry of Employment has provided flawed assessments that underestimated the number of people who would lose the right to benefit once the reform was implemented.

Frederiksen admits that the Ministry’s assessment was proved wrong.

“No one can predict the future. That’s why it’s so important that we don’t base our policies solely on estimates. We established the unemployment training scheme in order to give people who lose their benefit the opportunity to enrol in further training instead,” said Frederiksen.

No job guarantee

The government has introduced a number of initiatives to bring long-term unemployed back to work. Among other schemes, people who lose their benefit have the right to six months’ training under the auspices of the new training scheme.

However, a number of critics believe the established initiatives are not comprehensive enough to secure employment for the long-term unemployed. Frederiksen refuses to offer up assurances.

“There is no job guarantee in Denmark, and there never has been. I appreciate that unemployment and the loss of unemployment benefit leaves people in a difficult situation, but we should let that motivate us to help bring Denmark out of the financial crisis and create more jobs,” said Frederiksen.