1. Knowledge-based performance management Marie Hansen, Director General of the Danish National Labour Market Authority

2. 2 Agenda 1.Where are we - facts about the Danish labour market 2.Institutional framework for labour market policy 3.Knowledge-based performance management 4.Challenges for knowledge-based performance management

3. 3 Share of population in jobs (%)Public deficits if no reforms (share of GDP) Demographic challenges ahead – when 5 people retires, 4 people enter the labour force. Reforms are needed. 1. Where are we – facts about the Danish labour market

4. 4 Source: Jobindsats.dk Note: Permanent benefits: Early retirement, flexi-jobs and people waiting for a flexi-job. Ready for jobs: Unemployed benefit recipients and social benefit recipients who are ready for a job within three months (match 1). Not ready for a job or an active effort are: Social benefit recipients not ready for a job within three months (match 2) or not able to take part in activation (match 3). All series are in full time persons. Focus on reducing the number on permanent public benefit

5. 5  From public benefits to jobs  Youth education 1. Where are we – facts about the Danish labour market

6. 6 Minister for Employment National Labour Market Authority Regional Employment Councils 91 Integrated job centres for all job-seekers (insured and uninsured) Local Employment Councils National Employment Council 98 municipalities New structure since August 2009 4 Employment regions Full responsibility of the municipality, State subsidies External service providers 29 unemployment Insurance funds 98 Social Welfare offices - Cash benefits The Danish Pensions Agency 2. Institutional framework for labour market policy

7. 7 3. Knowledge based performance management  Today: ”It must be legal and financed”  Future: “1. It must work” “2. It must be legal and financed” It works -Legal -Financed 10-15% It is legal and financed 70-80% (It does not work) 10-15% 1 1 2 3

8. 8 3. Knowledge based performance management Social benefit recipientsUnemployment insurance benefit recipients Share of people on public benefits for at least one year without an active effort, % Source: National Labour Market Authority An active effort has an effect on the labour supply

9. 9 3. Knowledge-based performance management Source: Ministry of Finance An active effort has an effect on the labour supply Percent Structural unemployment Actual unemployment

10. 10 3. Knowledge-based performance management  Goals can only be achieved through combined national, regional and local effort

11. 11 National management tools: 1.Legislation 2.Economic incentives 3.IT-systems 4.Dialogue 3. Knowledge-based performance management

12. 12 3. Knowledge-based performance management Examples: Legislation National rules on job interviews:  If age 30+: A job interview within three months of unemployment and at least every three months National rules on activation:  If age 30+: A period of activation within 9 months of unemployment

13. 13 3. Knowledge-based performance management Municipality expenditures to public benefits Examples: Economic incentives

14. 14 3. Knowledge-based performance management Examples: It-tools  www.jobindsats.dk  The information is available on internet

15. 15 3. Knowledge-based performance management Examples: Dialogue  The Employment Regions are in continuous dialogue with the job centres about goals, strategies, results and efforts. Social partners also discuss the local employment policy with the job centres.

16. 16 4. Challenges in the near future  Reduce bureaucratic rules  On-going adjustment to make sure that the economic incentives are working  Need for more knowledge about what works  Increase ownership among citizens  better and more user oriented it-tools?  increased use of free choice?  economic incentives instead of legal rules?