A Golden Triangle
Flexicurity is a compound of flexibility and security. The Danish model has a third element - active labour market policy - and together these elements comprise the golden triangle of flexicurity.
One side of the triangle is flexible rules for hiring and firing, which make it easy for the employers to dismiss employees during downturns and hire new staff when things improve. About 25% of Danish private sector workers change jobs each year.
The second side of the triangle is unemployment security in the form of a guarantee for a legally specified unemployment benefit at a relatively high level - up to 90% for the lowest paid workers.
The third side of the triangle is the active labour market policy. An effective system is in place to offer guidance, a job or education to all unemployed. Denmark spends approx. 1.5% of its GDP on active labour market policy.