Denmark has unveiled plans to offer increased unemployment benefits to individuals pursuing retraining in sectors facing a labor shortage. The upcoming draft 2024 budget aims to provide

those receiving job insurance, known as 'dagpenge,' with 110 percent of the regular benefit rate if they enroll in professional qualifications within underrepresented industries.

This option, which currently exists as a temporary measure, may become a permanent feature next year. The Ministry of Employment confirmed that the draft budget, set to be presented this week, will transition the current back-to-work scheme into a permanent offering.

According to the ministry, the cost of implementing the proposal is estimated to be approximately 230 million kroner for the next year and 300 million kroner annually thereafter.

The existing temporary initiative was reintroduced in the latter half of 2023, modeled after a version from 2020. It enables individuals over the age of 30, lacking qualifications or possessing outdated credentials, to receive 110 percent of their monthly dagpenge payment by participating in a professional college course aligned with sectors approved for the program.

Results from the temporary scheme indicate its effectiveness in encouraging enrollments in sectors with workforce shortages. Ministry figures reveal that between August 1, 2020, and December 31, 2022, around 2,800 individuals embarked on professional college courses with the 110 percent dagpenge rate.

Prominent sectors benefiting from the scheme include social care, administration, machine operation, and business-to-business fields.

Employment Minister Ane Halsboe-Jørgensen emphasized the importance of the initiative in addressing labor gaps and facilitating career transitions. She stated, "This scheme helps more individuals move towards skilled work, ultimately contributing to staff availability in care homes and industrial workplaces across the nation." Photo by Phil Whitehouse, Wikimedia commons.