section_path: Economy/Labour market
section_name: Labour market
paragraph_text: Labour market
  
  Like other Nordic countries, Denmark has adopted the Nordic Model, which combines free market capitalism with a comprehensive welfare state and strong worker protection. As a result of its acclaimed " flexicurity " model, Denmark has the freest labour market in Europe, according to the World Bank. Employers can hire and fire whenever they want (flexibility), and between jobs, unemployment compensation is relatively high (security). According to OECD, initial as well as long-term net replacement rates for unemployed persons were 65% of previous net income in 2016, against an OECD average of 53%. No restrictions apply regarding overtime work, which allows companies to operate 24 hours a day, 365 days a year. With an employment rate in 2017 of 74.2% for people aged 15–64-years, Denmark ranks 9th highest among the OECD countries, and above the OECD average of 67.8%. The unemployment rate was 5.7% in 2017, which is considered close to or below its structural level.
  
  The level of unemployment benefits is dependent on former employment and normally on membership of an unemployment fund, which is usually closely connected to a trade union, and previous payment of contributions. Circa 65% of the financing comes from earmarked member contributions, whereas the remaining third originates from the central government and hence from general taxation.