3.2 Administration and governance
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Governance
Distribution of responsibilities for employment policies in Denmark
The Ministry of Employment is the top-level authority for employment policies in Denmark. The ministry establishes the overall framework, but the regional and municipal actors mentioned above are free to decide how local employment measures are designed. The municipalities are responsible for implementing the employment policy locally. The municipal rule in Denmark entails lots of room for manoeuvre for the municipalities as long as they comply with the legislation and ministerial objectives.
Employment and entrepreneurship governance in Denmark are structured across three levels: national, regional, and local.
National Level
The Ministry of Employment is responsible for employment policy, working conditions, safety at work, and industrial injuries. It oversees active labour market policies and financial support schemes.
The Danish Agency for Labour Market and Recruitment (STAR) implements employment policies and supports municipalities in job placement and vocational training initiatives. The National Employment Council (BER) advises the minister on labour market policy and legislative proposals. Denmark has four state institutions that assist social partners in relation to collective negotiations and other labour conflicts.
Regional Level
Denmark’s five regions play a role in growth and business development. Regional labour market councils (RAR), facilitate coordination between municipalities, trade unions, and employers to ensure local employment measures align with labour market needs. RAR also determines the short vocational training programmes available for unemployed individuals.
Local Level
Denmark has a local government, which means that acts passed in parliament are implemented locally. Each of the 98 municipalities has its own council elected by the municipal population. The municipalities are responsible for designing individualised and personal measurements within the scope of the laws.
Municipalities implement employment policies through job centres, which support job seekers and businesses. The Municipal Youth Guidance Units (kommunal ungeindsats) focus on integrating young people under 25 into education or employment, particularly those at risk of exclusion from the labour market. Municipal job centres also assist young people under 30 without formal education in securing training opportunities.
Main non-public actors
Unemployment insurance funds in Denmark
There are several unemployment insurance funds (A-kasser) in Denmark. These funds are responsible for the payment of benefits to their members. The unemployment insurance funds provide sector-specific guidance on job seeking and careers to the members. A number of unemployment insurance funds go further by locating job openings and establishing matches between job seekers and enterprises based on their network of union representatives in the enterprises.
The trade association of unemployment insurance funds (Danske A-kasser)
Danske A-kasser represents the unemployment insurance funds vis-à-vis politicians and public authorities.
As of January 2019, a new unit was established in KL – Local Government Denmark, which is the association and interest organisation of the 98 Danish municipalities. The new unit, Unit for Educational and Vocational Guidance in Municipalities (EUK), supports the development of quality educational and vocational guidance and supports networking among practitioners, and the exchange of experiences across municipalities.
Trade unions and federation of unions in Denmark
Trade unions in Denmark organise employees within the same trade. Local trade unions organise in larger federations. Trade federations organise in central organisations.
Denmark has three central organisations that negotiate on behalf of the trade federations and local trade unions: FH, the Trade Union’s Central Organisation (Fagbevægelsens Hovedorganisation), AC, the Danish Confederation of Professional Associations, and Lederne, (the Leaders).
Main employers’ associations in Denmark
Denmark has five employers’ associations, two main organisations in the private sector labour market and three in the public sector labour market.
The private sector labour market:
- Dansk Arbejdsgiverforening (DA), Danish Employers’ Association. Represents 14 employers’ associations. Established in 1896.
- Finanssektorens Arbejdsgiverforening (FA), the Danish Employers’ Association for the Financial Sector. Represents approximately 170 member companies. Established in 1989.
The public sector labour market:
- Kommunernes Landsforening (KL), Local Government Denmark. Represents the 98 municipalities in Denmark. Local Government Denmark is the interest group and member authority for the Danish municipalities. Established in 1970.
- Danske Regioner, Regional Denmark. Represents the five regions. Established in 2006.
- Finansministeriet, Ministry of Finance.
Cross-sectoral cooperation
Measures for unemployed young people under 30 years as well as general employment measures in Denmark are handled through a partnership-based approach. Depending on the need of the person, public and non-public actors mentioned above cooperate in partnership-based approaches in order to make sure that the right efforts regarding education or employment are carried out. The cash benefits reform, for example, reinforced the cooperation between job centres and education institutions in order to make the transition between unemployment and education easier. Furthermore, the Consolidation Act on Municipal Provision for Young People Under 25 (Lov om kommunal indsats for unge under 25 år, LBK nr 953 af 12/08/2024) requires municipalities to establish a cross-sectoral youth measure.