Denmark: government announces “temporary answer” to the problems caused by the unemployment compensation reform

Yesterday, May 14, the government presented its “temporary solution to face the severe problems arising from the crisis following implementation of the 2010 reform of the unemployment compensation system, which brought the period for receiving benefits from 4 down to 2 years.  The consequences on ordinary workers, denounced by union and criticized in numerous press columns, have driven the government to review the application of the reform.  Indeed, it judged that, because of this text, 27,000-32,000 jobseekers would lose their rights this year – hence the introduction of a new temporary allowance between 2014 and 2016, “giving the labor market time to create new jobs.”  (Ref.  130321)
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“We’ve launched a number of initiatives to support employment and help people in a delicate situation because of the unemployment compensation reform but, even though there are good results, we have to agree they’re not enough” recognized Labor Minister Mette Federiksen yesterday when she presented the government’s ideas to solve the problems caused by the enforcement of the 2010 reform (see article 100457). The text cut the payment of benefits from 4 down to 2 years and had a “brutal” impact

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