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The Three Elements of Flexicurity Flexible labour market Social security system Employ- ment and training policy.

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Presentation on theme: "The Three Elements of Flexicurity Flexible labour market Social security system Employ- ment and training policy."— Presentation transcript:

1 The Three Elements of Flexicurity Flexible labour market Social security system Employ- ment and training policy

2 Employment Security NOTE: Figures in brackets are unemployment rates in 2001. SOURCE: CEPS (2004) and Eurostat. Scale from 1-10 – the higher the number the more secure, 2001 (4,3) ( 3,6) (2,2)(4,9)(7,4) (9,1) (6,7) (3,9) (5,0) (9,1) (8,4)(10,8) (4,0) (10,8)

3 Job Satisfaction 1999, per cent SOURCE: European Foundation for the Improvement for Living and Working Conditions (2004).

4 Average Job Tenure in OECD Years SOURCE: CEPS (2004).

5 Labour Market Regulation Index of regulation, the lower the number the less regulation, 2003 SOURCE: OECD, 2004.

6 Regulation and Unemployment Unemployment, per cent 2003 Employment regulation index 2003 UK IRL DAN ØST ITA FIN HOL BEL TYS SVE GRÆ FRA SPA POR USA JAP Estimated line NOTE: A high index number reflects tight regulations. SOURCE: OECD (2004).

7 Flexibility in Wage Setting Per cent of employees where wages are negotiated: NOTE: DA/LO area. SOURCE: DA. CentrallyLocally, but minimum wage centrally negotiated 19892004 34 62 15 65 Locally 20 4

8 Flexibility in Working Hours NOTE: The figures represents collective agreements for approximately 90 per cent of the employees at the DA/LO area. SOURCE: DA.

9 Mobility in the Wage Distribution Per cent of employees in 1st wage decile who are in a higher wage decile 1 year after. 1999-2000. SOURCE: European Commission, 2003.

10 Participation in Continuing Education Source: OECD, Education at a Glance, 2005 Per cent of employed, 2004

11 Educational Costs at Company Level Per cent of total labour costs for educational training in private companies, 1999 SOURCE: Eurostat (2002).

12 Educational Attainment Per cent of labour force (25-64 year-olds) with higher education SOURCE: OECD (2004b) and DA (2004). Canada USA Japan Finland Australia Sweden Belgium Norway New Zealand Ireland Denmark UK Spain Netherland Korea Iceland France Germany Mexico Greece Canada USA Japan Belgiu m Finland Spain Norway Korea Ireland Sweden Australia France Denmark Netherland New Zealand Iceland Greece Germany Mexico UK 605040302010 2003040 50 60 20202002

13 Low Availability of Unemployed SOURCE: Statistics Denmark. Per cent of unemployed, 2003 Years old

14 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).

15 Expenditure on Labour Market Measures Per cent of GDP SOURCE: OECD (2005).

16 GDP per capita USA=100 calculated in PPP, 2003 SOURCE: OECD, 2004.

17 Unemployment Per cent SOURCE: OECD Employment Outlook 2005 EU 15 Denmark USA Japan

18 Employment rate Per cent of 15-64 years old SOURCE: OECD, Employment Outlook, 2005

19 Population – Working age 15-64 years old, index 2000=100 SOURCE: UN. USA Denmark EU Japan

20 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

21 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.)

22 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

23 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


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