Directorate of Labour, Stormgade 10, Postbox 1103, DK-1009 Copenhagen K Tel: Fax: Implementing Flexicurity in Times of Crisis, Prague March 2009 The road to flexicurity – incentives and barriers by Thomas Mølsted Jørgensen Head of Division National Directorate of Labour Copenhagen, Denmark

Directorate of Labour, Stormgade 10, Postbox 1103, DK-1009 Copenhagen K Tel: Fax: What is Flexicurity in the context of Labour Market Policy?

Directorate of Labour, Stormgade 10, Postbox 1103, DK-1009 Copenhagen K Tel: Fax: Flexicurity: a labour market policy measure + Easy hiring/firing + High and secure UI-benefit + ALMP: relevant offers, duty to seek jobs and participate in active measures

Directorate of Labour, Stormgade 10, Postbox 1103, DK-1009 Copenhagen K Tel: Fax: Catalytic for a dynamic labour market Vacant jobs to be filled, also in times of crisis Workers motivated to adapt and upgrade qualifications to new conditions Security: stability in the economy – macro as micro Flexicurity: the Danish experience

Directorate of Labour, Stormgade 10, Postbox 1103, DK-1009 Copenhagen K Tel: Fax: Barrier 1 Ineffective ALMP If scarce resources in PES no compulsion to participate in active measures insufficient monitoring of job-seeking shortage of relevant education / training

Directorate of Labour, Stormgade 10, Postbox 1103, DK-1009 Copenhagen K Tel: Fax: Barrier 2 Lack of flexibility If low UI-benefit prevents acceptance of risk of firing fear of unfair dismissals due to lack of unions never-ending benefit = disincentives to mobility

Directorate of Labour, Stormgade 10, Postbox 1103, DK-1009 Copenhagen K Tel: Fax: What to focus on Acknowledge that unemployment is a stressor Rights and duties – unemployed must be active Strengthen social partners’ organisations? –to reduce threat of unfair dismissals

Directorate of Labour, Stormgade 10, Postbox 1103, DK-1009 Copenhagen K Tel: Fax: Conclusions Positive initiatives + a tougher stance Job turnover important as job creation Institutional constraints severe Incentives important, but –could be established in many ways Trust and credibility are essential