The Adult Apprenticeships measure is in line with the European Employment Strategy and in particular with strategies for improving the qualifications of those without vocational qualifications, thus reducing the risk of long term unemployment.

As detailed below, there is relevance to the European Commission’s Employment Package, the Active Labour Market Policies and the EU Skills Panorama 2014.

The Adult Apprenticeships measure is in line with the European Commission’s Employment Package – Restoring the dynamics of labour markets, including:

• Reforming labour markets by developing lifelong learning and active labour market policies.
• Investing in skills by ensuring better recognition of skills and qualifications and anticipating skills needs – EU Skills Panorama – Focus on Apprenticeships, and
• Improving synergy between the worlds of education and work – Quality Framework for Traineeships.

The Adult Apprenticeships measure is in accordance with aims of the Active Labour Market Policies (ALMPs) for acquisition of the right skills, well-targeted training and vocational training that is based on workplace-based combined with school based training.

The scheme also fits the ALMPs’ recommendation that programmes need to be undertaken at an early stage to prevent unemployed falling into long-term unemployment.

In relation to EU Skills Panorama 2014 – Focus on apprenticeships, the Adult Apprenticeships scheme in Denmark is an example of a type of apprenticeship targeted at adults, the use of training contracts and the use of employer subsidies as an incentive.

The Act on active employment initiatives gives the context and includes requirements to work types covered according to needs and conditions to be met for subsidy eligibility.

There must be a need for labour for the type of work in question at the time the agreement is entered. At least once a year the Employment Region draws up a list of job types eligible for subsidies under the scheme.

Unemployment in Denmark is 5% (April 2014). This consists of a considerable number of unskilled, while there is a beginning shortage of skilled labour, especially within the electrician and metal worker areas. Employment is gradually increasing in Denmark and with demographic tendencies where large numbers are reaching pension age while there are fewer young people joining the labour market, there are challenges in upgrading the unskilled and recruiting qualified labour, particularly those with vocational skills. Pension age in Denmark is currently 65 years, but from 2019 this will increase to 67 years. After that the pension age will alter according to the population’s longer average life expectancy.

The Adult Apprenticeships measure addresses unemployment, the need for relevant vocational qualifications and skills, and sufficient labour force availability with qualifications that are needed by employers.

• The labour force in Denmark includes a large group of unskilled workers, and while there is now a tendency for a significant fall in the number of unskilled jobs in Denmark, there is a corresponding increase in the need for skilled labour.
• As a consequence, the group of unskilled unemployed is more prone to long term unemployment than other groups of unemployed.

The employment system in Denmark includes this specific scheme for adult apprenticeships. It enables people over the age of 25 to be employed in a business as an adult trainee on a ‘sandwich’ basis alternating with vocational college. The scheme leads to a vocational qualification.

• The employing business can receive a subsidy equivalent to about 20% of the trainee’s salary, thus adding an extra incentive for prospective employers to take on an adult trainee.
• The adult apprenticeships scheme is intended to be attractive to potential adult trainees due to the chance for the unskilled to gain vocational qualifications whilst receiving remuneration equivalent to that of unskilled employees.
• These apprenticeships also aim to ensure that unemployed people over the age of 25 have the chance of obtaining the necessary qualifications and a more stable position in relation to the labour market.
• Better qualifications. To be eligible for an adult apprenticeship, a person must be in a situation where they can achieve or improve their vocational qualifications, i.e. either be in work but without vocational qualifications, and arrange with the employer and jobcentre to enter a contract of apprenticeship, or be unemployed and unskilled.
• Employer satisfaction through taking on adult apprentices and typically receiving highly motivated and stable trainees.
• Larger labour force with vocational qualifications to meet future needs.

The Adult Apprenticeship scheme involves a combination of periods of training at college and at a place of work, based on a contract of apprenticeship leading to a vocational qualification. The scheme is administered by the jobcentre in each local authority, and is based on legislation that specifies requirements to the educational, training and contractual elements of the apprenticeships.

The trainee receives a salary during the work training as agreed in the contract. This should be at least as high as of the lowest wage of an unskilled worker in that sector. If no wage agreement exists, the salary must be equivalent to that for work of a similar nature. The adult apprentice receives a salary subsidy during the whole apprenticeship period, i.e. both whilst training with an employer and while at college. The work training subsidy is paid via the jobcentre, while the subsidy during school education periods comes from the Ministry of Education.

As the administrative authority, it is the jobcentre that decides whether an adult apprenticeship contract can be entered. It is also the jobcentre that administrates the subsidies to which the employer is entitled.

To qualify for the subsidy, the apprenticeship contract must be entered with a person who at the start of the contract is over the age of 25, and is without a vocational qualification or other work related qualification comparable to or higher than the level and duration of a vocational qualification, unless the person has not used the qualification over the last 5 years.

The Adult Apprenticeships scheme has existed in Denmark for a number of years and is an on-going measure. The scheme includes specific requirements and possibilities that enable people in the target groups to train for a vocational qualification under a contractual agreement.

The measure needs the establishment of a continued good cooperation between the jobcentres, employers and education institutions to avoid ‘bottlenecks’ in terms of setting up contracts with employers

As indicated by the Deloitte survey September 2013, Adult apprenticeship scheme - Effects, implementation and incitements, outcomes of the scheme showed several positive effects.

• There were considerable positive effects for adult apprentices who came from unemployment. After one year, 70% of these apprentices were in employment, as opposed to 58% in the control group, i.e. a 12% positive employment effect.
• For adult apprentices coming from unemployment on social security, there were considerable effects. One year on from completing the qualification, 62% of the adult apprentice group were in employment, while only 37% of the control group were. This showed a positive employment effect of 25%. The evaluation indicated though, that the positive effect was reduced over time, but even four years after the completion of the qualification, the effect was still positive at 15%.
• Interviews with apprentices were carried out during the survey. Responses clearly showed that the apprenticeship had improved their employment possibilities, both short term and long term. 76% were either “in full agreement” or “partly in agreement” that they were in a better position jobwise after having completed the adult apprenticeship.