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the new reform presented on Monday

The new reform of the unemployment insurance, which aims to change the compensation rules according to the state of the labor market, will be presented on Monday against the background of still strong and unanimous opposition from the trade unions.

The labor market bill, which was passed Thursday by the Folketing, triggers the possibility by decree to modulate certain rules, the idea of ​​the executive power, as long as unemployment insurance is stricter when too many jobs are unfilled, more generous when unemployment is high.

Despite the opposition of all the trade unions to the very idea of ​​this graduation, which condemns an unfair and ineffective reform, the text provided for a consultation that was launched in October.

During a final multilateral meeting with the social partners on Monday morning, Labor Minister Olivier Dussopt will announce the agreed arbitrations.

Against the backdrop of anger over purchasing power, the government ruled out touching the compensation level from the start. The Minister of Labor also assured that he would not affect the conditions for access to unemployment insurance, i.e. the condition of having worked six months out of a reference period of 24 months.

Remains the duration of the compensation. According to several union and employer negotiators who held bilateral discussions with Olivier Dussopt’s cabinet this week, the minister will announce that, in addition to a minimum floor of 6 months, the duration of the compensation will be adjusted according to the development of the unemployment rate for all. persons who will have completed their contract after 1 February 2023.

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When the labor market situation is judged to be good, the duration of the compensation will be reduced by a coefficient to be published on Monday, probably between 0.75 and 0.9 according to these sources.

The way to assess unemployment – threshold, dynamic – will be specified on Monday, but if unemployment remains at the current level, i.e. 7.3-7.4% since the beginning of the year, the reduction in the hard will apply according to these sources.

The director insists it is urgent in light of companies’ recruitment difficulties, and makes this reform a cornerstone of its strategy to achieve full employment by 2027, i.e. an unemployment rate of around 5% against 7.4% currently. A goal that the minister still considers achievable.

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