The Three Elements of Flexicurity

Flexible labour market

Social security system

Employ-ment and training policy

Employment Security

NOTE: Figures in brackets are unemployment rates in 2006.SOURCE: CEPS (2004) and Eurostat.

0123456789

DK AT NL SE DE FI BE IE UK IT FR ES PT GR0123456789

Scale from 1-10 – the higher the number the more secure, 2001

(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)

Job SatisfactionPer cent of employed, 2006

50

60

70

80

90

100

DK NO UK CH AT BE DE NL IE LU SE PT FI FR ES IT EL50

60

70

80

90

100

SOURCE: EFILWC (2007).

NOTE: The figures show the rate of employed who are satisfied or very satisfied with their occupation.

Is Globalisation a Threat or an Opportunity

-100

-50

0

50

100

DK SE NL UK IE FI IT ES DE PT BE AT GR FR

-100

-50

0

50

100

Globalisation represents an opportunity Globalisation represents a threat

SOURCE: The European Commission Special Eurobarometer, The Future of Europe, May 2006.

Average Job TenureYears

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

4

6

8

10

12U

S ISU

KD

K IE ES

CH

HU

NO PL CZ SK AT FI EL SE DE

NL

PT IT LU BE

FR EU

4

6

8

10

12

Labour Market RegulationIndex, the lower the number the less regulation, 2003

SOURCE: OECD, 2004.

0

1

2

3

4

UK IE DK AT IT FI NL BE DE SE GR FR ES PT0

1

2

3

4

Regulation and UnemploymentUnemployment, per cent 2003

0

3

6

9

12

0 1 2 3 40

3

6

9

12

Employment regulation index 2003

UK IEDK

AT

IT

FI

NL

BEDE

SE

GRFR

ES

PTUS

JP

Estimated line

NOTE: A high number reflects tight regulations.SOURCE: OECD (2004)

Flexibility in Wage SettingPer cent of employees where wages are negotiated:

NOTE: DA/LO area.SOURCE: DA.

Centrally Locally

1989 2005

34

66

16

84

Flexibility in Working Hours

The 37 hours of work per week is calculated as an average over:

Share of employed per cent

In 1998 In 2004

No flexibility 7 2

3 weeks – 6 months 24 7

6 months to 11 months 13 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.

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.

0

6

12

18

24

30

36IR

L

DK P E F

NL

FIN

UK

EU EL A D I B

0

6

12

18

24

30

36

Participation in Continuing Education

Per cent of employed, 2003

SOURCE: OECD (2006).

0

10

20

30

40

50

SE DK

US

FI

CH

UK

CA

AT

FR

SK BE

DE

LU

CZ

IE NL

PL

PT

ES

GR

HU

IT

0

10

20

30

40

50

NOTE: Covers non-formal job-related continuing education and training over the previous 12 months.

Educational Costs at Company Level

Per cent of total labour costs for educational training in private companies, 1999

SOURCE: Eurostat (2002).

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

DK

SE NL

EI

FR FI EU

-15

NO

LUX

IT BE

DE

ES

AU

PT EL

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

Educational AttainmentPer cent of labour force (25-64 year-olds) with higher education

SOURCE: OECD and FN.

CanadaUSAJapanFinlandSwedenBelgium

Australia

DenmarkNorway

New Zealand

Korea

Ireland

UKSpain

Switzerland

Germany

France

Holland

Luxembourg

Island

Canada

Spain

JapanKorea

Belgium

Finland

USA

IrelandNorway

Sweden

Australia

DenmarkUK

New Zealand

SwitzerlandIsland

Germany

Luxembourg

Holland

France

60 50 40 30 20 10 10 200 30 40 50 6020202004

Israel Israel

People on public benefits1,000 people, 2006

SOURCE: Statistics Denmark.

0 50 100 150 200 250

Disability pension

Flexjob (active and inactive)

Social assistance

Sickness benefit

Parental leave

Unemployed

Employable

Less employab

le

Job training, rehabilitation, etc.

Early retirement (including

65-66 year old pensioners)

Low Availability of Unemployed

Per cent of unemployed, 2005

SOURCE: Special report from Statistics Denmark.

0

10

20

30

40

50

15-24 25-29 30-49 50-59 60-66

0

10

20

30

40

50

Do not wish to work Do not seek work Not able to attend work

Years old

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).

Expenditure on Labour Market Measures

Per cent of GDP, 2005

SOURCE: OECD (Employment Outlook, 2007)

0

1

2

3

4

5

DK BE

NL

GE FI SE FR ES

AT PT CH

NO IE AU

CA

NZ

UK JP CZ

US

KR

0

1

2

3

4

5

Active measures Total measures

GDP per capitaEU-25=100 calculated in PPP, 2006

SOURCE: OECD, 2007.

020406080

100120140160

USA EU-25 Denmark Japan020406080100120140160

UnemploymentPer cent

SOURCE: OECD (Employment Outlook, 2007).

0

2

4

6

8

10

12

'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '060

2

4

6

8

10

12

EU 15

Denmark

USA

Japan

Employment rate

SOURCE: OECD (Employment Outlook 2007).

0

20

40

60

80

100

EU15 Denmark USA Japan

0

20

40

60

80

100

1994 2006Per cent of 15-64 years old

Population – Working Age15-64 years old relative to entire population, index 2005=100

SOURCE: UN, World Population Prospects, Medium variant.

75

80

85

90

95

100

105

2005 2010 2015 2020 2025 2030 2035 2040 2045 205075

80

85

90

95

100

105

Japan

Denmark

USA

Western Europe

Flexible Regulation in Denmark

Main CharacteristicsBasic 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