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Unemployment insurance: the Danes turn to the private sector

2020-08-25T15:07:28.683Z


The recession is accelerating a movement started with the continued decline in allowances.The Covid-19 pandemic, which has crippled the Danish economy, has caused more than 50,000 people to lose their jobs since March, while as many more face the same fate on August 31, when the expiration of '' a support system for businesses. In the Kingdom of Denmark, known for its flexicurity, unemployment benefit, capped at 19,083 crowns (2,560 euros) gross per month, represents only half of incom...


The Covid-19 pandemic, which has crippled the Danish economy, has caused more than 50,000 people to lose their jobs since March, while as many more face the same fate on August 31, when the expiration of '' a support system for businesses. In the Kingdom of Denmark, known for its flexicurity, unemployment benefit, capped at 19,083 crowns (2,560 euros) gross per month, represents only half of income for a large part of employees. In 1970, it was equivalent to 80% or even 90% of the salary. It has eroded over decades and crises, disconnected from the evolution of wages while its duration has been shortened to two years.

Read also: Is Emmanuel Macron inspired by the Danish model of flexicurity?

In this context, the number of private unemployment insurances to compensate for the loss of income has grown dramatically. Over the past ten years, they have grown from 87,000 subscribers to 370,000 in 2020 according to an analysis by the Cevea think tank which warns of the risk of collapse of one of the pillars of the flexicurity model.

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Source: lefigaro

All news articles on 2020-08-25

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