Ways to increase employment

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1 Ways to increase employment

2 Iceland Luxembourg Spain Canada Italy Norway Denmark Germany Portugal Ireland Japan Belgium Switzerland Austria Slovenia United States New Zealand Finland France Netherlands Hungary Israel Mexico United Kingdom Sweden Australia Greece Poland Slovak Republic Korea Czech Republic Estonia Turkey Chile DK: 7th lowest growth in OECD towards 23 Annual growth in real GDP per capita, , percent NOTES: The growth rates are calculated on the background of potential GDP per capita, fixed prices, US dollar and adjusted for spending power. SOURCE: OECD Economic Outlook 95 Doc ID: 33323

3 Iceland Switzerland Estonia Czech Republic Tyrkey Slovenia Austria United Kingdom Poland Sweden Slovak Republic Hungary Luxembourg Denmark Germany Finland Portugal Netherlands Norway France Belgium Greece Ireland Spain Italy Danes' actual labour supply far from the top 1,4 1,2 1,,8,6,4,2, Total annual working hours distributed between all year olds, 1, hours, 213 1,4 1,2 1,,8,6,4,2, NOTES: The total annual working hours is calculated as the annual working hours per employed person * employment frequency for year olds. SOURCE: OECD.

4 Sweden has the highest employment rate 1 Proportion of population in employment, percent DK-24 DK-213 SE-24 SE year olds year olds year olds year olds NOTES: SOURCE: Doc ID:

5 Large increase in benefit recipients since Recipients of public benefits year olds, 1, full-time equivalents Cash benefits Leave of absence Flexjob etc. Maternity benefits Sickness benefits Unemployment benefits Activation Early retirement, flex-benefits etc. Disability pension, unemployment benefits for flex-jobbers and Pension NOTES: The retirement age was reduced from 67-years old to 65-years old from 24, after which year olds pensioners are included. State Education Grant recipients are not included. Supported employment is people in employment with wage subsidy (e.g. flex-jobs and light jobs) Unemployment benefits include holiday allowance. The development over time must be interpreted with caution as it is not possible to make a fully consistent time series due to changes in the labour market policy and restructuring of the statistics. Whole-year persons except pensioners. SOURCE: The Ministry of Finance and the Ministry of Economic Affairs and the Interior's response to the Finance Committee's Doc ID: 48697

6 Lower male participation, increased among women 1 8 Labour force participation rate, year olds, percent Men Total Women NOTES: SOURCE: Doc ID:

7 More people are further away from the labour market today The proportion of public benefit recipients year olds, percent The more grey the marking of the programme is, the further the people are from the labour market. Gross unemployed (unemployment benefits and social assistance benefits incl. activation) and holiday allowance benefit Maternity benefits and leave of absence Sickness benefit Social assistance (for people unfit for work, incl. activation) etc. Pension, early retirement, flex allowance and transition benefits Disability pension, flex and light jobs etc., unemployment benefit, rehabilitation and resource programme Total, percent Total on public assistance, 1, full-time equivalents The proportion of population year olds, percent SOURCE: Jobindsats.dk

8 Fewer people on early retirement in 15 years Number of year olds, 1, full-time equivalents 1. Disability pension Sickness benefit Cash benefits (excl. activation) Activated receivers Supported employment Maternity benefit Unemployment benefit and holiday benefits Pension (65-66-year old) and early retirement NOTES: Supported employment is, among others, flex-jobs and light jobs. Pension and early retirement are included in flex-benefits. Estimate for full-time equivalents is based on the Ministry of Finance's projection with the exception of year old pensioners, which is based on DREAM's projection. SOURCE: The Ministry of Finance: Updated 22 programme (August 214) and DREAM's Doc ID:

9 Large expenses for social benefits in Denmark 8 Public expenditures for income support to the working age population, Percent of GDP, Denmark Netherlands United Kingdom Sweden Germany NOTE: Difference in taxation of the benefits in the five countries means that the net expenses will be slightly different. Source: OECD (214), Social Expenditure Database, SOCX, Income Support to the Doc ID: Working Age Population.

10 2, fewer benefit recipients in seven years Full-time equivalents in the "bidrags-ersättningssystem", 1,, year olds Early retirement benefit Sickness benefit Unemployment benefit Activation Cash benefits "Flex job" NOTES: "Flex-job" in Sweden is a temporary wage subsidy scheme. SOURCE: SCB, Sweden. Doc ID:

11 Minimum wage Unemployment benefits Cash benefits Sickness benefits (available) Job clarification allowance Flex wage subsidy unemployment benefits, flexjobbers Ressource program Disability pension Early retirement benefit/flex allowance Many schemes - unhealthy incentives Payment DKK per hour, transfers adjusted for labour market contribution, minimum wage adjusted for employment allowance, NOTES: The starting point is the right to public benefits for a person who has previously earned the minimum wage in the retail area. Cash benefits are set rates for breadwinners over the age of 3. SOURCE: The Ministry of Employment, The Ministry of Children, Gender Equality, Integration and Social Affairs, ATP (Labour market supplementary pension) and the national collective agreement for shops between The Danish Chamber of Commerce and HK Handel trade union. Doc ID: 467

12 Minimum wage Unemployment benefits Cash benefits Sickness benefits for unemployed Disability pension Few schemes - healthy incentives Payment DKK per hour, transfers adjusted for labour market contribution, minimum wage adjusted for employment allowance, NOTES: The starting point is the right to public benefits for a person who has previously had an income that corresponds to the minimum wage in the retail area. Cash benefits are set rates for breadwinners over the age of 3. Doc ID: 467 SOURCE: The Ministry of Employment, The Ministry of Children, Gender Equality, Integration and Social Affairs, ATP (Labour market supplementary pension) and the national collective agreement for

13 Mental health is dynamic 4 Proportion of group with serious mental illnesses in 24 after health status in 27 (5-64-year olds), percent No Illness Moderate illness Serious illness NOTES: SOURCE: Doc ID:

14 Greece Italy Romania Spain Poland Sweden Norway France Germany Netherlands Austria United Kingdom Ireland Finland Iceland Belgium Denmark DK has the most attractive cash benefits The degree of compensation in relation to a job at DKK 23,, percent, Without children With children NOTES: The following family types are included in the calculation: (1) Single person without children, (2) single person with children, (3) couple without children and (4) couple with children. The starting point for a couple is that the partner already has work that pays DKK 23,. The salary is set at 67 percent of the average salary. The calculations also include various supplementary benefits such as housing allowance and child allowance. Subsidy for day-care payment is not included in the calculations. SOURCE: DA on the basis of the EU Commission, Tax and Benefits Database.

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