Flexicurity, Local Government and Active Labour Market Policy in Denmark

Active labour market policy (ALMP) has over the years been the subject
of both conflicts of interest and considerable restructuring. This chapter
outlines these developments and their effects on the functioning of the
Danish flexicurity model, which is briefly outlined in the beginning of the
chapter.
The starting point for the discussion of the role of local government is the
reform of the structure of the municipalities in 2007. Here the number of
municipalities was drastically reduced. At the same time the responsibility for implementation of active labour market policy was to a large degree
transferred to the individual municipality. At the same time the activities
and results of the local job centres were to be closely monitored by the
national authorities. The chapter analyses the conflicts related to the reform and the subsequent changes in both the content and implementation
of Danish employment policy.
Through reforms in 2015 and 2020, the municipalities were relieved from
much of the pressure that was put on them in 2007. Their degrees of freedom simply became greater. Process requirements were fewer. It was now
possible to design the effort for the individual unemployed in greater accordance with the individual needs. Whether the municipalities can live
up to the positive expectations behind the reforms, thus contributing to a
new vitality of the challenged Danish flexicurity model, will be tested in
the coming years.