The European Commission Mutual Learning Programme for Public Employment Services DG Employment, Social Affairs and Inclusion EMPLOYMENT POLICY FOR YOUNG PEOPLE IN DENMARK Peer country paper Youth Guarantees (Input to Peer Review, Austria, 22/23 March 2011) Danish National Labour Market Authority in collaboration with GHK Limited / Budapest Institute Date: March 2011 The information contained in this publication does not necessarily reflect the position or opinion of the European Commission. CONTENTS 1 2 3 4 5 6 THE UNEMPLOYMENT RATE FOR YOUNG PEOPLE .................................... 3 PES ORGANISATION AND SERVICE PROFILE ............................................... 9 ENSURING ACCESS TO PES FOR YOUNG PEOPLE ................................... 11 PES SERVICES AND PARTNERSHIPS FOR YOUNG PEOPLE..................... 12 EFFECTIVE PES MEASURES FOR YOUNG PEOPLE ................................... 15 ASPECTS OF TRANSFERABILITY AND CONCLUSIONS ............................. 18 1 THE UNEMPLOYMENT RATE FOR YOUNG PEOPLE According to Eurostat data, the Danish unemployment rate for young people less than 25 years old is 14.8%, which is low in the European context. Long-term unemployment is 5.9% and the lowest in Europe. Figure 1. Unemployment rates for young people < 25 years Unemployment rate for young Long term unemployment rate for people < 25 years (2010Q3) young people < 25 years (2010Q3) Sweden Denmark Austria Finland The Nederlands Slovakia 0 Spain Lithuania Slovakia Greece Lithuania Esonia Ireland Hungary Italy Polen Portugal Rumania Belgium France Bulgaria Sweden EU 27 Great Britain Tyrkey Czeck republic Denmark Finland Cyprus Slovenia Luxembourg Iceland Germany Malta Austria The Nederlands Norway 0 Polen 0 5 Tyrkey 10 0 5 Cyprus 10 10 Germany 20 10 Lithuania 20 Great Britain 15 Spain 30 15 EU 27 30 Belgium 40 20 France 40 20 Czeck republic 25 Greece 50 25 Portugal 50 Romania 60 30 Ireland 60 30 Letland 35 Estonia 70 35 Slovenia 80 70 Italiy 80 40 Bulgaria 45 40 Hungary 45 Source: Eurostat National data also shows that youth unemployment in Denmark is relatively low. For the 25-29-year-old age group, the unemployment reached its peak of 9.1% in July 2010. For young people under 25, the unemployment rate has been around 5% since the beginning of 2010. Denmark has also been hit by the economic crisis, but the rise in unemployment seemed to come to a halt in the last quarter of 2010 and today the unemployment is tending to decline. 3 Figure 2. Unemployment rates for young people 16-24, 25-29 years Unemployment rate for young Long term unemployment rate for people 16-24, 25-29 (seasonal young people, 16-24, 25-29 (as a adjusted, Jan. 2004-Oct. 2010) share of the labour force) 0 25-29 years 25-29 years 2010M10 2010M07 2010M04 2010M01 2009M10 2009M07 2009M04 2009M01 2008M10 2008M07 2008M04 2008M01 2007M10 2007M07 2007M04 2007M01 2006M10 2006M07 2006M04 2006M01 2005M10 Pct 2005M07 2005M01 16-24 years 2005M04 Pct 2010M10 2010M07 0 2010M04 2 0 2010M01 2 0 2009M10 2 2009M07 2 2009M04 4 2009M01 4 2008M10 4 2008M07 6 2008M04 6 4 2008M01 6 2007M10 6 2007M07 8 2007M04 8 2007M01 8 2006M10 8 2006M07 10 2006M04 10 2006M01 10 2005M10 12 10 2005M07 12 2005M04 Pct. 12 2005M01 Pct. 12 16- 24 years Sources: Two sources: Until December 2006 Jobindsats.dk. From January 2007 and forward the source is Statistics Denmark. Young people receiving social benefits and having other problems than unemployment (abuses, psychological problems etc.) and therefore not capable of finding a job on ordinary terms within three months, are not included in the national unemployment statistics. Figure 3 shows the number of young people on benefits that are not available for the labour market. Figure 3. Young people 16-24, 25-29 years receiving social benefits and not capable of finding a job on ordinary terms within three months Young people receiving social Young people receiving social benefits and not available for the benefits and not available for the labour market, 16-24, 25-29 labour market, 16-24, 25-29 (as a share of the labour force) 20.000 20.000 18.000 18.000 16.000 16.000 14.000 14.000 12.000 12.000 10.000 10.000 8.000 8.000 6.000 6.000 4.000 4.000 2.000 2.000 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0 0 jan-06 maj-06 sep-06 jan-07 maj-07 sep-07 jan-08 maj-08 sep-08 jan-09 maj-09 sep-09 jan-10 maj-10 sep-10 jan-11 16-24 years 12% 0% jan-06 maj-06 sep-06 jan-07 maj-07 sep-07 jan-08 maj-08 sep-08 jan-09 maj-09 sep-09 jan-10 maj-10 sep-10 jan-11 16-24 years 25-29 years 4 25-29 years Source: Jobindsats.dk and Statistics Denmark. Note: In the Danish match system, people receiving social benefits and are not capable of finding a job on ordinary terms within three months are in match category 2 (ready for the services of the job centres) and 3 (not ready for services of the job centres). Box 1: Eurostat data vs. national data on unemployment National data and data from Eurostat on unemployment are not directly comparable. Eurostat uses sample data from questionnaires and national data uses register data on people receiving unemployment benefit. The sample data includes people that are not working but say they want to work and actively are looking for jobs (i.e. the sample also contains people studying, people on retirement as well as people who are not entitles for unemployment benefit). Therefore Eurostat data typically show a higher unemployment rate in Denmark compared to national data using register data on people receiving unemployment benefits. Getting an education is first priority Education policy and the training system is the responsibility of the Danish Ministry of Education. A child can begin compulsory education at the earliest by the age of five but he/she must begin education at the latest in the calendar year when they reach the age of six. Danish children have today ten years of compulsory education (from age 6 to 16). 5 Figure 4. The Danish Education and training system Source: Danish Ministry of Education It is very important that young people get an education as it lowers the risk of them being unemployed. Therefore, the Danish government has set out a national goal that 95% of young people will have an upper secondary education by 2015. Today, about 82% of young people aged 25 have at least an upper secondary education. The Ministry of Education has set up many initiatives to promote that young people get an upper secondary education. For example the Government has decided to reward companies with a bonus up to € 9,500 for creating apprenticeships. Young people can find answers to many questions regarding choice of education, apprenticeship training, university studies etc. at www.uddannelsesguiden.dk. Here young people can also find information about different types of jobs. The information is brought to the young people in an easy accessible way by quizzes, a compass etc. It is outside the scope of this paper to go through all the initiatives of the Ministry of Education. 6 Table 1. The highest completed education level at age 25, 2010 Highest completed education level at the age 25 Persons Share Higher than primary school 61.319 82% Primary school 13.067 18% Total 74.386 100% Source: Statistics Denmark According to the latest OECD data, Denmark is ranked 14 when comparing populations that have attained at least upper secondary education. The figure also shows that a higher share of 25-34 year-olds have at attained at least upper secondary education than 55-64 year-olds i.e. that the young generation is better educated than the older generation. Figure 5: Population that has attained at least upper secondary education 2008 (25-34 and 55-64 years) Source: OECD Education at a glance Table 2 shows how old Danes are when completing secondary school, vocational secondary school and vocational training. In 2009, almost half of Danes completed vocational training above 24 years of age. Almost all Danes complete secondary school or vocational secondary school by the age 18-24 years. 7 Table 2. Completion of an upper secondary education or upper secondary vocational education, by age groups, 2009 18-24 years 25-29 years 30-39 years 40+ years Total Secondary School (almengymnasial) Persons Share 25.353 99% 219 1% 87 0% 15 0% 25.674 100% Vocational secondary (erhvervsgymnasial) Persons Share 9.875 97% 233 2% 94 1% 14 0% 10.216 100% Vocational training (erhvervsudd.) Persons Share 16.687 54% 5.508 18% 4.826 16% 3.755 12% 30.776 100% Source: Statistics Denmark The following chapters show the organisation of the Danish employment system, the services provided by the job centre, and how new information on measures are collected, especially with respect to employment policy for young people. 8 2 PES ORGANISATION AND SERVICE PROFILE Today the employment services for members of the unemployment insurance funds and recipients of social benefits (i.e. insured and uninsured unemployed) are the responsibility of the municipalities1. There are 91 local job centres (one job centre for each of the municipalities (except for the smallest municipalities covered by municipal co-operation schemes)). The job centres provide employment services for all unemployed people, regardless of the form of public assistance they receive. The job centres also assist enterprises in recruiting and retaining employees. At the job centre, people may for instance: Register and deregister as an unemployed person Have an interview concerning jobs Develop a job plan Get help with recruiting new employees to their enterprise In order to ensure continuous follow-up of the employment efforts, there are four state-run employment regions. The employment regions analyse, monitor and follow up the efforts made in the job centre, as well as labour market developments. The National Labour Market Authority, and ultimately the Minister of Employment, has the overall responsibility for the employment policy in Denmark. The National Labour Market Authority set up legal rules and measures/tools to ensure the best possible results and effects of the employment services in the municipal employment system: Minimum legislative requirements for active efforts Financial incentives are to motivate the municipalities to get unemployed people into jobs through active efforts Centralised IT tools Management tools that ensure transparency and focus on the results of the job centre Dialogue between the employment regions and job centre on efforts and results 1 As a part of the municipal reform of 1 January 2007 (where Denmark went from 271 municipalities to 98 municipalities), major changes in the political employment system came into effect. Until August 2009, the Danish state was responsible for the employment services and targeted members of the unemployment insurance funds, and the Municipal system dealt with recipients of social benefits. However, in accordance with a political agreement, a decentralisation took place from 1 August 2009. After this date, all the employment services for members of the unemployment insurance funds and recipients of social benefits (for insured and uninsured unemployed individuals) became the responsibility of the municipalities. 9 Figure 6: The Employment System in Denmark from 2009 Minister of Employment National Authority Labour Market 4 Employment regions Private Service Providers 91 job centres (The municipality council has the full responsibility) Source: The National Labour Market Institution Reimbursement rates The municipalities pay public assistance benefits to unemployed people and have expenditure for employability enhancement schemes (upgrading of skills, on-the-jobtraining or jobs with wage subsidy). However, a large part of this expenditure is reimbursed by the state. From January 2011, the reimbursement rates will be lowered and harmonized so that the higher rate of reimbursement - for both the insured and uninsured unemployed individuals - is 50%, and the lower rate is 30%. The municipalities get the higher reimbursement rate when unemployed people participate in practical work-based training in enterprises, wage subsidies or ordinary education. The lower reimbursement is paid if the unemployed are not in activation or job-search assistance schemes, or in guidance, upgrading of skills and qualifications schemes. The municipalities thus have a strong incentive to place unemployed people into employability enhancement schemes, in other words, where they can participate in practical, work-based training in enterprises, wage subsidies or ordinary education. 10 3 ENSURING ACCESS TO PES FOR YOUNG PEOPLE In Denmark, the job centres undertake employment-related tasks for all unemployed people. However, it is the youth guidance centres and not the job centres who are responsible for the co-operation with schools and provide guidance services/vocational orientation. The Ministry of Education has the overall responsibility of the youth guidance centres. There are 45 municipal youth guidance centres which provide guidance services for young people up to the age of 25 years. The youth guidance centres focus on guidance related to the transition from compulsory school to youth education or, alternatively, to the labour market. The main target groups for the youth guidance centres are: pupils in primary and lower secondary school and young people under the age of 25 who are not in education, training or employment. Their main role is to help young people less than 25 get back into the educational system. The youth guidance centres must offer guidance and assistance to any youth who has completed compulsory education, is less than 25-year-olds, has not completed an upper secondary education or a higher education or is not currently studying one of these. The centres also provide service to young people under the age of 25 who contact the centres themselves for guidance. Guidance activities include individual and group guidance sessions, as well as introductory courses and bridge-building schemes to give pupils a „taste‟ of conditions, levels and requirements at different youth education institutions. Crosssectoral co-operation is emphasised in the Danish legislation on guidance to ensure a coherent guidance system and a regular exchange of experiences, knowledge and best practice. The youth guidance centres are thus obliged to co-operate closely with the job centre, as well as primary and secondary schools and youth education institutions in the area. The job centre services to young 15-17-year olds Since August 2010, the job centres can provide activation and mentor services to young people aged 15-17 who have not yet begun an education or do not have a job. Therefore, resources have also been provided for increased co-operation between the youth guidance centres, educational institutions and the job centre. The Ministry of Education and the Ministry of Employment are co-operating to develop a database which will ensure a full overview of the education and training of each young individual. This will enable the quick identification of vulnerable young people and provide the information needed to offer a targeted effort. The database will be available in 2011. 11 4 PES SERVICES AND PARTNERSHIPS FOR YOUNG PEOPLE Public expenditures in active and passive labour market programmes in general are about 2.5% of GDP (1.5% of GDP on passive labour market policies and 1.0% on active measures)2. The overall services provided by the job centres typically consist of i) guidance and upgrading of skills and qualifications; ii) practical work training in enterprises; and iii) wage subsidies. These instruments can be combined according to the needs of the person and/or those of the labour market The primary goal for the job centres is to get the young unemployed with an upper secondary education into jobs and the young unemployed without an upper secondary education into education. As a general rule, every recipient of unemployment benefits should be registered as unemployed at the local job centre and should actively search for a job. He/she has to apply for all jobs which he/she can manage and must be able to start a job with one day‟s notice. All unemployed people will, after some time, receive an individual action plan indicating regular mandatory contacts with the job centre, as well as participation in ALMPs. Four target groups The employment policy for young people is based on four target groups: Figure 7: The four target groups 2 Source: Eurostat/OECD database on Labour Market Programmes (jobs for youth 2010) 12 The job centres provide job interviews and activations to the four target groups and can impose sanctions if the unemployed do not take active part. If a young person belongs to target group 2, the job centre can oblige him/her to take actions in order to be enrolled in ordinary education, and if not, the job centre can impose sanctions on his/her benefits/allowances. Private Service Providers The job centres can decide to use external service providers to provide services to the unemployed. It is however mandatory for the job centre to use private service providers for the unemployed with an academic education due to concerns that this target group would not get the sufficient quality of services particular in the smaller job centres. The social partners The social partners are involved in employment policy through councils at national, regional and local level. The cooperation with social partners is an integral part of labour market policy. This also applies in fields that are primarily regulated by legislation, such as health and safety at work, job placement and unemployment insurance. The social partners are consulted in connection with the drafting of legislation related to the labour market. In many fields, decisions are made by central or local councils in which the social partners are also represented. National Unit for young people The National Labour Market Authority has established a National Unit for the young unemployed. The unit provides guidance for the job centre on how to understand the legal rules and best practises for young unemployed. Legal rules The main legal rules regarding activation measures for the young unemployed are: If aged 18-19, they are entitled to a period in activation within one month for a length of six months. If aged 20-29, they are entitled to a period of activation within three months for a length of six months. If still unemployed, the job centre initiates a new activation period within six months of the last activation period. The legal rules on job interviews are: If aged 18-29, they are entitled to a job interview within one months and at least every three months IT systems In order to ensure a transparent labour market, the National Labour Market Authority provides a national database of job ads and CVs (www.jobnet.dk). It is mandatory for the unemployed person to fill out a CV within three weeks. The database also trawls other job databases on the Internet so it contains all job ads available online in 13 Denmark. Therefore, the database is a useful tool in order to actively look for jobs. The National Labour Market Authority also provides Statistics on the services and results of the job centres which is available for everyone at www.jobindsats.dk Other services available to young people The job centres can provide tests in reading/writing and maths, and if needed, they can provide courses in reading/writing and maths. The job centres can also provide a mentor for young people and the young person can keep their mentor when they start studying. The job and CV database is extended to include part-time jobs for young people aged 15-17 Initiatives of the National Labour Market Authority In order to promote employment services in the municipalities that have an effect on employment, the National Labour Market Authority initiates new legislation, campaigns and dialogue with the job centres through campaigns, pamphlets and new measurements on www.jobindsats.dk etc. Local job centre initiatives The job centres often cooperate with social partners and schools in setting up local events, campaigns, websites etc. to help young people into jobs or education. There is a wide range of these initiatives across the job centres since the job centres decide locally to participate in these initiatives. 14 5 EFFECTIVE PES MEASURES FOR YOUNG PEOPLE In Denmark, the main ALMP instruments are: 1) guidance and upgrading of skills and qualifications; 2) practical work-based training in enterprises; and 3) wage subsidies. These three instruments can be combined according to the needs of the person and/or those of the labour market. In order to gather more information on the measures targeting the unemployed, the National Labour Market Authority carries out randomized controlled trials (controlled trials) where uniquely planned programmes are tested. Box 2: More on controlled trials The target group in controlled trials is divided into a treatment group and a control group The treatment group is subject to the program being tested while the control group is subject to the normal procedure A large number of randomly selected persons (at least 1,000 in treatmentgroup and control-group) and a large number of job centres have to participate in the trials for the results to be representative. Job centres register their services during the trial for both groups. The data is used to monitor if the job centres implement the program properly and to be able to measure cost-benefit of the effects by the end of the trial. Controlled trials are evaluated by external evaluators. The quantitative evaluation shows the effects of the program given to the test group compared to the program given to the control group. The qualitative evaluation tries to explain the results found in the quantitative evaluation. The National Labour Market Authority has initiated six controlled trials. Four trials has been completed and evaluated, one is in the evaluation phase and one has just been started. Job interviews in the beginning of the spell and intensive follow up works The National Labour Market Authority has carried out two controlled trials testing the effects of an early and intensive effort of the job centre. The target group was newly unemployed members of unemployment insurance funds across all age groups. The quantitative evaluations showed that the early and intensive effort had a significant effect on employment. Job interviews in the beginning of the unemployment spell followed by job interviews every second week is very effective in order to get unemployed into jobs. This result also applied for the young unemployed. 15 Activation in real enterprises works Most studies (Danish as well as international studies) find that activation is most effective if it is organised in the form of practical work-based training in enterprises or through wage subsidies. This result applies to all age groups of the unemployed. Activation in real enterprises helps the unemployed person to get a network of real colleagues and carry out real tasks. It also helps the unemployed person to develop their skills. The National Labour Market Authority has set up a campaign to promote enterprise centres. Here job centres can arrange with a company (for example a local super market) to set up a fixed number of seats (at least four seats) for recipients of social benefits with other problems than unemployment (abuses, psychological problems etc.) and therefore not capable of finding a job on ordinary terms within three months. In an enterprise-centre the people on social benefits work a few hours a week for a period of up to 13 weeks with the possibility of having the period extended. A fixed number of seats mean that when one person on social benefits leaves the company, he or she makes room for another to enter. As a part of the arrangement the job centre pay for one of the employees in the company to be a mentor for people on social benefits and thereby give the support needed for these persons to get back on track. An evaluation of enterprise centres showed that enterprise centres bring more people (on social benefits and not capable of taking a job within three months) into ordinary jobs than other activation programs for this target group. Enterprise centres gives the people on social benefits a network of real colleagues and they also get the opportunity to carry out real tasks in the company helping them to improve their skills. The mentor ensures that they get the support they need. The job centres are continuously in contact with the enterprise-centres as well as the people on social benefits in the enterprise centres and help them if needed. A controlled trial for young unemployed people In 2009, the National Labour Market Authority set up a controlled trial called “Unge – godt i gang”„(Young people – well started‟) in 14 selected job centres. The target group was young 18-29 year olds irrespective of the type of benefit they receive. The control group was given the „normal‟ services provided by the job centre (see section 4). The program for the persons in the test group with an upper secondary education was: A letter of participation in the project 'Young People – Well Started‟ Weekly job interviews or job interviews once every two week at the job centre with a focus on getting a job Activation in the form of practical work-based training in enterprises or wage subsidies for 26 weeks after 13 weeks 16 The program for the people in the test group without an upper secondary education was: A letter of participation in the project 'Young People – Well Started' After 1 week: a course where the job centre clarify the skills and wishes of the young person Weekly interviews with the job centre with a focus on how and when to start education If necessary, a mentor If necessary, a reading/writing course Activation in the form of practical work-based training in enterprises or wage subsidies for 26 weeks after 6 weeks in the trial The trial on young people will be evaluated in 2011. How do we use the results? The controlled trials produce new knowledge about effective measures targeted different groups of unemployed people. The National Labour Market Authority uses the new knowledge to develop its employment policy through new legislation, campaigns and dialogue with the job centre. This new knowledge often leads to more questions which need to be investigated. 17 6 ASPECTS OF CONCLUSIONS TRANSFERABILITY AND The structures of the Austrian and Danish employment systems are very different which limits the potential transferability of the Austrian practice to Denmark. The Danish employment system is more decentralised than the Austrian system and employment policy and education policy are also more divided than in Austria. In Denmark, the employment services in the job centres are the responsibility of the municipalities, whereas in Austria the employment services of the PES are the responsibility of the state. Also, in Denmark, the cooperation with schools, contact with pupils, apprenticeships etc. are not the responsibility of the job centres (but the youth guidance centres and the Ministry of Education), where as in Austria, it is the responsibility of the PES. Also, the approval of benefits is different in the two countries. In Austria, young people less 25 years-of-age have to prove 6 months of employment within the last 12 months before the claim and the benefit can only be granted if the PES cannot get them into employment or vocational training within 4 weeks. In Denmark, more young people are entitled to benefits as the approval system seems less demanding. In Austria, the legal rules are more based on rights rather than duties, whereas in Denmark the legal rules are based on the principle that rights and duties go hand in hand. It could be interesting to know more about how Austria avoids the phenomena of „creaming‟. It could also be useful to learn more about how they motivate the unemployed without having the instrument of sanctions. The unemployment rate for young people in Austria is very low (according to Eurostat, the third lowest in Europe), and in this respect, it would also be interesting to learn more about the active measures in Austria. In Austria, they have found that after three months (and 12 months) after the end of measure: 85% after 3 months (83% after 12 months) of those who have undergone subsidised apprenticeship training in a company were in some kind of employment. o In subsidised apprenticeship training, the companies get a monthly allowance up to €400 for providing apprenticeship training to girls within areas where there is a low share (less than 40%) of female participants, disadvantaged youths and youths participating in „integrative vocational training‟ i.e. disabled persons, persons who did not receive a lower secondary school degree. The companies get a monthly allowance up to € 755 for training youths older than 19 whose employment problem can only be solved by such training. 66% (81%) of those who have undergone subsidised apprenticeship training in a institution were in some kind of employment. 18 o Subsidised apprenticeship training takes place in vocational training centres and most of them closely related to social partners and associations selected through a tendering process 64% (65%) of those who had been activated via a wage subsidy were in some kind of employment. o Companies and institutions can be offered wage subsidies to employ jobseekers who are registered unemployed for more than 6 months (youth < 25 years) and more than 12 months (> 25 years). The maximum duration is 2 years and the maximum subsidy is 2/3 of the salary, including non-wage labour costs. 59% (52%) of those who had got assistance through „counselling and assistance providers‟ o PES counsellors can be outsourced to respective institutions called „counselling and assistance providers‟. In some regions, such providers take care of young jobseekers or apprenticeship-seekers that are hard to place. 58% (58%) of those who participated in external courses were in some kind of employment. 48% (68%) of those who participated in vocational orientation and similar measures were in some kind of employment. 46% (55%) of those who participated in integrative apprenticeship training o Youths participating in „integrative vocational training‟ i.e. disabled persons, persons who did not receive a lower secondary school degree. Integrative apprenticeship training offers two options: training in basic skills demanded by the labour market which leads to an officially recognised certificate or a prolonged version up to 3 years leading to a regular apprenticeship certificate. 44% (54%) of those who participated in employment in a non-profit employment project were in some kind of employment. o Non-profit organisations offer jobs for long-term unemployed up to one year. They are involved in repairing items and offer services like the maintenance of playgrounds, public gardens etc. 34% (64%) of those who participated in German language courses where in some kind of employment. 21% (46%) of those who participated in courses to obtain a lower secondary school degree where in some kind of employment. Conclusion/comments on the most effective practices The Danish National Labour Market Authority focuses on helping the job centres to promote the services which have an effect on increasing the labour supply and 19 reducing unemployment. The controlled trials produce new knowledge about the effective measures targeted at different groups of unemployed people. The National Labour Market Authority uses the new knowledge to develop its employment policy through new legislation, campaigns and dialogue with the job centres. Like the Austrian public employment service, the Danish National Labour Market Authority also finds that it is very important that young people get an education as it lowers the risk of them being unemployed. Therefore, the job centres are able to oblige young persons (without children and considered able to take up an education) to take actions in order to be enrolled in ordinary education, and if not, the job centre can impose sanctions on his/her benefits/allowances. Also the Danish National Labour Market Authority finds that active measures are very effective in helping young people into jobs and education and activation is most effective if it is organised in the form of practical work-based training in enterprises or through wage subsidise. Finally, activation in enterprise-centres is an effective tool to help people across all age groups with other problems than unemployment back on track. 20