Unemployment (monthly)

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Purpose and history
The purpose is to produce statistics monitoring the structure and trends in the unemployed population and the causes of unemployment. The statistics are compiled on the basis of registers. The data sources of the statistics are: The Central Register of Labour Market Statistics (CRAM), The Register for LabourMarket (RAM) and direct data reports from the municipalities concerning the match category and the scope of activation of recepients claiming social assistance.

The statistics on the registered number of unemployed have been compiled by Statisics Denmark since 1979. To avoid a great number of discontinuities of the data series, the statistics have roughly speaking remained unchanged since 1979. However, the unemployment statistics have been adjusted as from the publication of uemployment figures for January 2008. The underlying primary data have been edited and changes have been made to the concept of unemployment, which imply that the Danish concept of unemployment is now closer to the definition of unemployment applied by the International Labour Office, ILO, see item 3.1. All changes have been made back to the year 2000.

Description of Contents
The statistics provide data on the unemployed population registered with the unemployment insurance funds and with the public job centres. The statistics comprise all unemployed persons insured against unemployment and non-insured persons included in the match categories 1-3, who are claiming cash benefits under the Danish Social Assistance Act and who fulfill the international definition of unemployment (see section 3.1).

The statistics cover both the actual number of unemployed and the seasonally adjusted number of unemployed full-time persons as well as the unemployment rates in relation to the labour force aged 16-64 and in relation to the number of insured unemployed persons registered with the unemployment insurance funds.The statistics are analysed by region, sex, age group insurance category (full-time, part-time or non-insured), unemployment insurance funds and cause of unemployment.

Statistical Concepts
The statistics comprise unemployed persons insured against unemployment and unemployed non-insured persons claiming cash benefits. It is assumed that unemployed non-insured persons, who do not claim cash benefits, are only to a limited extent registered with the job centres and are thus excluded from the statistics. The unemployment statistics exclude persons whose main occupation is activation or leave, including persons claiming leave allowance or early retirement benefit. These persons are covered by special statistics (AMFORA statistics) on labour market policy measures, which are compiled quarterly.

Recipients of unemployment benefits
As from January 2008, the RAM register forms the basis for compiling the number of unemployed receipient of cash benefits. The number of unemployed weekly hours is calculated from information reported by each unemployed person. Unemployed hours cover both hours for which unemployment benefits are claimed and hours for which unemployment benefits are not claimed, including hours paid by the employer at the beginning of an unemployment period and hours from previous overtime hours, which are set off against unemployed hours in connection with calculating unemployment benefits and hours, which in numerical terms, do not fulfil the minimum requirement needed to claim unemployment benefits for a week. The number of unemployed hours for which unemployment benefits cannot be claimed is only included in the statistics provided that they appear from the information reported by the unemployed person. A survey shows that according to the information reported by the unemployed population, the number of unpaid, unemployed hours corresponds to about 3 pct. of all hours for which unemployment benefits are claimed.

Degree of unemployment benefits
The degree of unemployment benefits during the reference period, i.e. the degree of unemployment benefits during the month or year is calculated for each person by summing each individual weekly degree of unemployment benefits and dividing by the number of weeks during the reference period. The degree of weekly unemployment benefits is defined as the weekly number of hours for which unemployment benefits can be claimed in relation to 37 hours (irrespective of whether the person in question is insured on a full-time or part-time basis).

Number of recipients of unemployment benefits
The number of recipients of unemployment benefits is defined as the number of persons having a degree of unemployment benefits (during the reference period) which is higher than zero. Consequently, the statistics cover all persons for whom the number of hours of unemployment benefits during the reference period is higher than zero. Subsequently, persons for whom the scope of deductions implies that unemployment benefits cannot be claimed are excluded from the number of recipients of unemployment benefits. The number of recipients of unemployment benefits is calculated by summing up the degrees of unemployment benefits for all recipients of unemployment benefits during the reference period.

Alternatively, the average degree of unemployment benefits for all recipients of unemployment benefits during the reference period can be calculated. The following equation is thus applied: Number of full-time recipients of unemployments benefits = the average degree of unemployment benefits* The number of recepients of unemployment benefits.

Number of recipients of unemployment benefits below the maximum rate of unemployment benefits
The concept reflects the number of recipients of unemployment benefits, who are on the basis of either an individually estimated rate or fixed rate entitled to claim unemployment benefits, which are lower than the maximum rate of unemployment benefits. Full-time or part-time insured persons can be entitled to claim the maximum rate of unemmployment benefits, as a distinction is made between the maximum rate of unemployment benefits for full-time and part-time insured persons.

Total unemployment benefits paid
Total unemployment benefits paid, i.e. the total payments of unemployment benefits during the reference period are obtained by summing up total payments of unemployment benefits for all recipients of unemployment benefits.

Average payment of unemployment benefits
The average payment of unemployment benefits is defined as total unemployment benefits paid in relation to the total number of full-time recipients of unemployment benefits.

Average rate of unemployment benefits
The concept reflects the average rate of unemployment benefits per day per person.

Average earnings before the transition to claiming unemployment benefits
Average earnings before the transition to claimining unemployment benefits indicates the average daily earnings in DKK after the deduction of labour market contributions, which form the basis of estimating unemployment benefits. The concept is only defined for those recipients of unemployment benefits for whom the rate of unemployment benefits is individually estimated.

Average degree of compensation
The average degree of compensation is estimated as the ratio between the average rate of unemployment benefits for persons for whom the rate of unemployment benefits have been individually estimated and average earnings before the transition to claiming unemployment benefits. The concept indicates the degree of compensation within the insurance system for unemployment benefits. Figures for 2007 covering all the above-mentioned concepts have not yet been published as the statistics are still in the process of being adjusted.

Recipients of cash benefits under the Danish Social Assistance Act
The National Labour Market Authority compiles the extent of unemployment for recipients of cash benefits. The principles for the compilation of unemployment implies, e.g. that unemployed recipients of cash benefits are only included to the extent (number of hours) for which pure unemployment is registered, see the outline of the compilation method below:

1) Payment of cash benefits or initial assistance form the basis of compiling unemployment related to recipients of cash benefits.
2) The match categorising of recipients of cash benefits and initial assistance, which is conducted by the job centres form the basis of the labour market availability. The group of persons who are available for the labour market are restricted to persons included in the match categories 1-3, immediate match category or match category not stated, but where the persons are registered with the central government part of the job centres.
3) Unemployed recipients of cash benefits who are registered with the jobcentres in the labour market portal with the comment temporarily exempted from labour market availability are excluded from the compilation of recipients of cash benefits.
4) The data reports on activation and the registrations of activations by the job centres form the basis of compiling the scope of activation for persons participating in local government activation, which is estimated on an hourly basis. The hours in which a recipient of cash benefits has participated in an activation program are excluded from the total unemployment of recipients of cash benefits.

  Read more about the statistics on 'Unemployment' in our Declarations of contents

Releases

Last updated:	26 August 2010
Scheduled releases:	30 September 2010 for the period August 2010

Contact

Carsten Bo Nielsen
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