Danish flexicurity

The simultaneous presence of both flexibility and security on the labour market has developed a labour market model that seems to meet the challenges of globalisation. The Danish example shows that labour market flexibility and job security are not contradicting terms but go hand in hand. Companies can adapt to changes while employees retain a feeling of security.

Companies face a Darwinian struggle in a globalised economy. Only companies who are able to adapt rapidly to the constant changes in market demands will survive. The ability to adapt requires flexible labour markets.

Most flexible in the world

The Danish labour market is known for its flexibility. International surveys by IMD, the World Bank and OECD have for years ranked the Danish labour market as one of the most flexible in the world.

250,000 Danish jobs are closed down each year, but at least as many are created. The turnover rate is consequently high. 800,000 Danes change to another job each year.

Historical figures

Today, the rate of unemployment is historically low and the level of employment is high.

At the same time, the level of security for the employee on the Danish labour market is high. In addition to the system that comes into force when people are hit by unemployment, the security aspect is highly linked to the ability of getting a new job if you lose or quit your old one.

    Facts

    Workers in Denmark (72 per cent) are most likely to believe they could quickly find a new job in case of unemployment, followed by workers in New Zealand (71 per cent) and Canada (65 per cent). 

    (Source: Roy Morgan International and Gallup International on unemployment expectations among people who work full-time or part-time in 67 countries.)

    Flexible labour market
    In Denmark, it is relatively easy to hire and fire employees. Unlike Sweden, Norway, and Finland, Denmark has no general labour code that regulates notices of dismissals or defines on which ground an employee can be dismissed.
    High level of security
    Danish employees do not consider globalisation as a threat to their future employment. On the contrary, they are the most optimistic employees in the North. Besides, Danes are more satisfied with their jobs and more motivated than employees in the other Nordic countries.
    PUBLISHED: 5/25/2011 LAST MODIFIED: 5/16/2012
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