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1. Forthcoming policy developments

2. Ongoing debates

Forthcoming policy developments

In December 2022, a new government took office. In the government foundation, Responsible for Denmark (Ansvar for Danmark), the government presents the political foundation for the government. Several labour market initiatives regarding young people are mentioned in the foundation, among others:

• Invite social partners to tripartite negotiation on the 45.000 NEETS in Denmark
• Focus on after-school jobs for young people
• Consider the adjustment of student intake into certain education programmes to match the demand from the labour market better. The initiative is progressing and adjustments are being introduced through a broad political reform agreement

In October 2023, the government made three political agreements, which among other things, will ensure a simpler and more transparent cash benefits system. As a part of the agreement, DKK 150 million was allocated to a three-year effort to support young cash benefit recipients in moving into employment or education. . 

The cash benefits reform entered into force on 1 July 2025, introducing a simpler benefit system. In addition, a funding reserve of approximately DKK 103 million annually has been allocated for vulnerable young people in the period 2026–2034. Through Ungeløftet (“The Youth Commitment”), these funds are used to support targeted employment measures that help young people who are neither in education nor employment (NEET) transition into work or education (see section 3.6).

In parallel, a comprehensive reform of the employment system was adopted in April 2025, replacing the former job center regime with a more flexible and simplified framework focused on individual needs, reduced process requirements and greater use of results-based approaches. 

The government allocated additional funding in 2025 to targeted initiatives such as Supported employment for young people with social challenges (Flere unge skal med) and Individual Placement and Support (IPS), with a particular focus on vulnerable young people, including young people with mental health challenges. The government involves relevant experts and stakeholders to ensure that initiatives are based on up-to-date knowledge of the target group and effective practice.

Another challenge is the NEET rate. With the Preparatory Basic Education and Training Programme (FGU) (see section 3.11), new targets have been established by the Ministry of Children and Education:

• In 2030, at least 90% of 25-year-olds must have completed an upper secondary education programme.
• In 2030, the NEET rate must be reduced by 50%.

Ongoing debates

Main Topics in the Debate

Strengthening the Entrepreneurial Culture Among Youth
There is increasing interest in promoting entrepreneurship among young people. Danish Business (Dansk Erhverv) has proposed five initiatives to strengthen the entrepreneurial culture among children and young people. These initiatives focus on providing them with the right skills, tools, and motivation to engage in entrepreneurship. (Dansk Erhverv)

Increasing Youth Participation in Entrepreneurship
Statistics Denmark (Danmarks Statistik) reports that the percentage of young entrepreneurs has risen from 16% in 2010 to 21% in 2020, indicating a positive trend in youth engagement in entrepreneurship. (Danmarks Statistik)

Key Actors in the Debate

Business Organizations
Dansk Erhverv plays an active role in promoting youth entrepreneurship through analyses and policy recommendations. (Dansk Erhverv)

Educational Institutions
Schools and educational institutions play a central role in influencing young people's interest in entrepreneurship by integrating entrepreneurial education and offering relevant resources. (Efterskolerne.dk)