The Danish government has unveiled a significant reform aimed at the job centre system, with backing from four opposition parties. This reform will downsize the job centres operated by local municipalities, granting them increased autonomy over the approval of unemployment benefits. Notably, the reform is projected to save approximately 2.7 billion kroner, as it will reduce the number of required interviews by 500,000 and decrease the number of employment consultants needed. Employment Minister Ane Halsboe-Jørgensen emphasized the importance of this shift away from centralized control over service provisions in Denmark.
Under the new reform, municipalities will gain more autonomy in approving unemployment benefits, potentially leading to a significant reduction in government spending and job centre operations.
This reform could save the government up to 2.7 billion kroner by cutting down on unnecessary interviews and allowing local authorities to determine their own benefit frameworks.
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