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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, the government put aside DKK 150 mil for a new program that will focus on supporting young cash benefit recipients to obtain a job and/or an education. The programme builds on the previous success of the programme Clarification and individual support to long-term recipients of social assistance (Flere skal med), which was aimed at adults. 

As a part of the new cash benefits agreement, the government has set aside funds for additional targeted initiatives aimed at vulnerable young people. These funds are especially directed towards the still significant group of young people who are neither in education nor employment (NEET). The parties involved in the agreement want to strengthen efforts for this group.

A reserve of up to DKK 103 mil annually has been allotted to finance initiatives that can help vulnerable young people, including those with mental health challenges over the period 2025-2035. In the first half of 2024, the parties involved will meet to discuss how the reserve should be specifically utilised based on a proposal from the government.

The government will involve relevant experts and stakeholders in developing the proposal to ensure that it considers relevant and up-to-date knowledge about the target group. The parties involved aim to use the reserve for initiatives benefiting vulnerable young people, both within and outside the social welfare system, including those on unemployment benefits.

Restructuring the employment system

An expert group set up by the government must come up with recommendations in June 2024 for what a new employment system might look like, based on the existing job centres being closed down.

Overall, the expert group's recommendations must come up with suggestions on how employment efforts can be exempted from state process requirements to a greater extent. The intention is to release resources to help the unemployed in jobs.

Unemployment funds and private suppliers must play a greater role in efforts for those who are only out of work for short periods. The other employment efforts must give greater priority to citizens who have greater challenges in finding a job.

The goal of the restructuring of employment efforts is to get the unemployed into work more quickly.

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)

Political Parties
The Liberal Party (Venstre) has introduced an entrepreneurship strategy with 23 initiatives to improve conditions for self-employed individuals and entrepreneurs, which could also benefit young entrepreneurs. (Venstre)