Unemployment insurance funds
The purpose of the unemployment insurance funds in Denmark is to ensure economic support for the unemployed citizen. They also work closely with the municipalities.
Unemployment insurance is a voluntary scheme administered by Denmark's unemployment insurance funds and not by the state. The Danish unemployment benefit system is based on the Ghent system and has its roots in the early 1900s. In its present form, it dates to the late 1960s.
Denmark's unemployment insurance funds are private associations of employees or self-employed persons organised for the sole purpose of ensuring economic support in the event of unemployment.
Unemployment benefits are, however, largely financed by the State. There are all in all 21 unemployment insurance funds in Denmark.
The Act on Unemployment Insurance is administered by the Danish Agency for Labour Market and Recruitment. For more information:
Link to lifeindenmark.borger.dk