Danish employees feel a higher level of job security

According to the 1997 OECD Employment Outlook, published in July 1997, Danish employees feel less job insecurity compared with their counterparts in other OECD countries.

Danish employees feel less job insecurity than their counterparts in other Organisation for Economic Co-operation and Development (OECD) countries, it emerges from a report in the OECD's 1997 Employment Outlook. On average, seven out of 10 employees in the OECD countries examined disagree with the statement "my job is secure", whereas in Denmark only four out of 10 employees do so. In contrast to most OECD countries, there is no difference discernible in feelings on job security between white- and blue-collar Danish employees, nor between employees in industry, services or public administration. In other OECD countries, blue-collar employees in industry and the services sector feel more insecure about their jobs than white-collar workers in public administration.

It may come as a surprise to some that so many Danish employees are more confident about their job security, particularly as Denmark has liberal rules on dismissal and a high level of job mobility. One explanation, according to the OECD, is that employees from countries with a high level of unemployment benefit, in general have a higher level of perceived job security. The same pattern is present for countries with a high degree of coverage by collective bargaining, and where the collective bargaining system is relatively centralised.

In Denmark, the highest level of unemployment benefit for insured employees - members of an Unemployment Insurance Fund - is DKK 525 per day or DKK 2,625 per week, with a maximum compensation ceiling based on 90% of previous earnings. Unemployment benefit is subject to income tax.