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Denmark has record-low number of unemployment benefits claimants

Fewer people than previously recorded are currently in receipt of the basic form of Danish unemployment benefits.

Denmark has record-low number of unemployment benefits claimants
Denmark is currently seeing record numbers of job vacancies combined with low unemployment. Photo: Ida Guldbæk Arentsen/Ritzau Scanpix

The number of people who receive kontanthjælp, the basic form of unemployment welfare, was 103,300 in June, according to Statistics Denmark data.

That is the lowest number since records began 14 years ago.

The number includes other basic benefits given to people on work re-entry programmes as well as the lower integrationsydelse which is given instead of kontanthjælp to migrants who are in the integration system.

People not currently in employment can qualify for welfare payouts known in Danish as dagpenge, funded in part by the state and in part by membership fees, by joining an A-kasse or unemployment union.

Non-A-kasse members can apply for ‘social assistance’ or kontanthjælp, the lowest level of benefit. It is only available to those over 30 years old, who are legally resident in Denmark, and who have no other means of support.

EXPLAINED: Should I sign up with a Danish union and get unemployment insurance?

Economic Council of the Labour Movement (Arbejderbevægelsens Erhvervsråd) senior economist Erik Bjørsted said that the new numbers indicate that the strong Danish economy is bringing people in from the fringes of the labour market.

“We are currently going through a jobs boom without precent in modern times. That is opening the doors for people on the edge of the jobs market,” Bjørsted said.

“The large drop we saw in the number of people receiving social assistance from 2004-2008 was back then called the biggest social-political advance in decades. We are now repeating it,” he added.

An additional factor in the low number is the suspension of the minimum eligibility period for dagpenge during the coronavirus crisis, another commentator said.

That means people would not have been forced to switch from one form of welfare to the other because their dagpenge maximum eligibility period was used up.

As such the current level for the more basic kontanthjælp is “artificially low, according to senior economist Niklas Praefke from organisation Lederne.

“During the coronavirus crisis, the dagpenge limit was suspended, so nobody used up their right to it during that period. That has put a plug in the transition from dagpenge to kontanthjælp,” Praefke said in a written comment.

The economist also said that a high number of vacancies in Denmark gave good potential for getting available people into work.

READ ALSO: Why does Denmark have so many job vacancies? 

The number of people receiving kontanthjælp peaked at 175,200 in 2015 before consistently falling, except for a sharp peak caused by the coronavirus crisis.

Denmark’s government on earlier this week presented proposals to reform rules on certain types of social welfare including the two main forms of unemployment benefit.

READ ALSO: What do Denmark’s proposed welfare reforms mean for foreign residents?

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JOBS

How much Danish do you need to learn to get a job in Denmark?

Learning a new language like Danish is a process that can take years. So at what level can you test out your new skills and apply for a job in Danish? We spoke to a language teacher to find out.

How much Danish do you need to learn to get a job in Denmark?

There are many international companies in Denmark where the workplace language is English – opening up opportunities to many nationalities who want to live and work in Denmark. However for some professions, a certain level of Danish is a requirement and for others, working in Danish opens up more doors.

“The level we say you need to get a job is to have passed the Prøve i Dansk 3 (PD3), which is the official exam by the Ministry of Education. It is equivalent to the B2 European Framework level,” Maria-Sophie Schmidt, language consultant at Studieskolen’s private Danish department told The Local.

The Common European Framework of Reference for Languages (CEFR) is an international standard for describing language ability. It uses a six-point scale: A1, A2, B1, B2, C1, C2, where C2 is for those who are advanced and fluent in the language. It means employers and educational institutions can easily assess language abilities.

“When you pass Prøve i Dansk 3 and are B2 level, you’re not completely fluent but you can function in Danish and read newspaper articles in Danish. Usually I say B2 level is like a driver’s license we give you on your Danish. So you can drive a car but if you want to be a really good driver, you have to go practice in traffic. So after PD3 and with practice and with help perhaps, you should be able to write an application in Danish and go through an interview,” Schmidt said.

PD3 will always help you get a job because companies appreciate you have the certificate. There’s a worry for some companies that you aren’t fluent.

“It is also helpful because Danes like to socialise in our workplaces such as at julfrokost (Christmas lunch) or fredagsbar (Friday afternoon drinks) and some are uncomfortable having to change their language to English all the time, maybe because we don’t feel we speak it well enough. So if you come as a foreigner and have a certificate of Prøve i Dansk 3, I think it’s a big advantage,” Schmidt added.

Foreign dentists and doctors need to have passed Prøve i dansk 3, as well as other professional tests before being able to start an evaluation period of working. 

However there are some sectors where passing the Danish language exam isn’t a requirement. Due to current pressure on hospital waiting times in Denmark, nurses outside of the EU are no longer asked to pass Prøve i dansk 3. Instead, they can demonstrate their Danish language ability, in line with the requirements used for nurses from EU and EEA countries. This includes a six-month probation period where Danish communication skills are assessed.

READ ALSO:

The construction industry and engineering, as well as hospitality are other sectors where Danish language skills won’t necessarily need to be B2 level or need certification. But whether or not you require the Prøve i Dansk 3 certificate, practicing Danish is the key to gaining confidence in the Danish workplace.

“Sign up for a language course or sign up to a sports club and surround yourself with Danish language. Insist on speaking Danish and if you know anyone speaking native Danish, ask to have a coffee and practice your Danish. If you have kids and meet other parents, speak Danish, or volunteer at somewhere like a nursing home,” Schmidt suggested.

READ ALSO:

Language schools offer a Module 6 course, called Studieprøve to get to C1 level. Here you learn to read, write and speak more academic Danish. It is a requirement for those wanting to study in Danish but you don’t need it for a job.

“At Studieskolen we offer Classes after PD3 – a conversation class at B2 and C1 level where you don’t focus on grammar and writing but on speaking relevant topics in society such as what’s going on now, newspaper articles, TV shows and practice speaking to colleagues in small talk and more complicated conversations. PD3 is a driver’s license but you often can’t join a conversation spontaneously or you may lack confidence and vocabulary, so those classes help that.”

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