[2] The system of labour market flexibility provides workers with a high level of benefits and allows employers to hire and fire employees with ease.
This combination has been in place in Denmark since the 1970s, but the high costs of public benefits eventually began to strain government finances.
These new cash benefit policies have had a positive effect on the flow of young adults away from unemployment and into education or employment.
[6] Currently, the legislation which encompasses the policies of these benefits is The Act on Unemployment Insurance, which is executed by the Danish Agency for Labour Market and Recruitment under the Ministry of Employment.
From here, the claimant is required to specify the industry in which they wish to work, create a CV and look at jobs suggested for them every seventh day, in order to actively seek employment.
[9] The amount paid by their insurance fund depends on age, educational attainment, full or part time status and previous salary.
[9] Employment benefits in Denmark can involve up to 90 percent wage reimbursement per month for a maximum period of three years.
These new criteria will take into account a company's overall revenue, tax constraints and type of industry when assigning new benefits in an effort to ensure that wage earning does accurately meet the needs of all workers.
[13] This statistic can be mainly attributed to the reduction in unemployment benefits by way of reforms during the 1990s and early 2000s and also to the effectual active labor market programs instituted in Denmark.
[14] These agencies have been particularly successful in helping economically disadvantaged groups and workers on the outskirts of the labor market through pre-employment training, job searching, CV writing, and subsidized "work trials", which allow employers and employees to measure the future success of candidates in their desired position.