Youth Employment and Entrepreneurship Policy in Denmark

The overall goal of Danish labour market policy is to ensure that young people are equipped with the necessary skills to sustain themselves, whether through employment or self-employment. While Danish youth are more educated than ever, gender segregation remains a structural challenge in the labour market due to differing educational and career choices.

For young people without formal qualifications, the government prioritizes vocational education to enhance their skills and job prospects, as unskilled youth face the highest risk of unemployment and precarious employment. Key initiatives include:

1. A legal requirement for 15-17-year-olds to be engaged in education, employment, or training (see section 3.4).
2. A special “education benefit” for young people without formal education, alongside guidance to facilitate their entry into education (see section 3.6).

Denmark maintains a relatively low NEET rate (Not in education, employment or training). In 2022, Eurostat reported an 8.8% NEET rate for the 15-29 age group. According to the Danish Labour Force Survey, the unemployment rates in the third quarter of 2023 were:

• 4.6% in the 15-74 age group
• 12.2% in the 15-24 age group
• 6.2% in the 25-34 age group

Labour shortages are emerging in sectors such as construction, ICT, and services. The Danish labour market is characterized by high flexibility, making it easy for employers to hire and dismiss employees. This dynamic is supported by a strong welfare system, unemployment benefits, and voluntary unemployment insurance schemes that provide financial security during job transitions.

Youth Entrepreneurship

In addition to employment measures, Denmark actively promotes youth entrepreneurship as a pathway to economic self-sufficiency and innovation. The government supports young entrepreneurs through various initiatives, including:

• Entrepreneurship education: Schools and higher education institutions integrate entrepreneurial skills into curricula to foster an entrepreneurial mindset from an early age.
• Start-up support: Young entrepreneurs have access to business incubators, advisory services, and financial support, such as microloans and grants, to facilitate business creation and scaling.
• Public-private partnerships: Collaboration between government, private enterprises, and NGOs strengthens the entrepreneurial ecosystem by providing mentorship, funding, and networking opportunities.