Skilled, motivated case workers can be a powerful tool for breaking cycles of unemployment and disadvantage
What if a job counselor’s belief in their client could make the difference between long-term unemployment and a return to work? Our new research suggests that this idea isn’t just hopeful, it’s backed by evidence.
In Denmark, people who have been unemployed for long periods and receive social assistance are supported by case workers at local job centers. These professionals help connect clients to jobs, training, or other support programs. But our study uncovers something less visible yet deeply influential: the case worker’s belief in their client’s potential.
By analyzing over 10,000 case worker-client relationships across ten Danish job centers, we find that clients assigned to more optimistic, job-focused case workers experience significantly better outcomes. They are more likely to find work, earn higher wages, and maintain those gains over several years.
The impact goes beyond employment. Clients with optimistic case workers also show better health outcomes, including lower use of prescription painkillers and medications for addiction and lifestyle-related diseases. This suggests that having someone who believes in you not only boosts motivation but can also improve overall well-being.
These effects are particularly meaningful for people facing long-term unemployment, often coupled with health issues or limited education, who are among the hardest to help. In such cases, belief is not a luxury. It can be a powerful tool for social and economic reintegration.
So, where do these beliefs come from? Interestingly, we find that optimistic case workers do not develop their attitudes just because they have had more success with clients in the past. Their outlooks tend to remain stable over time. This means we cannot simply hope that experience will turn pessimists into optimists. Instead, we need to actively promote and support positive attitudes through training, leadership, and workplace culture.
Our findings highlight a crucial and often overlooked insight: policies and programs are important, but the people who deliver them matter just as much. A job center with trained, motivated, and optimistic case workers could be one of the most effective tools for breaking cycles of unemployment and social disadvantage.
If we want better active labor market policies, we must not only consider what we offer, but also how, and by whom, those services are delivered.
© Søren Albeck Nielsen and Michael Rosholm
Søren Albeck Nielsen is Assistant Professor at Aarhus University, Denmark
Michael Rosholm is Professor at Aarhus University, Denmark, and since 2010 he is Research Director of Centre for Labour Market Research and Impact Studies (CAFE), and IZA Research Fellow
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We recognize that IZA World of Labor articles may prompt discussion and possibly controversy. Opinion pieces, such as the one above, capture ideas and debates concisely, and anchor them with real-world examples. Opinions stated here do not necessarily reflect those of the IZA.
Related IZA World of Labor content:
https://wol.iza.org/articles/do-case-workers-help-the-unemployed by Michael Rosholm
https://wol.iza.org/articles/job-search-monitoring-and-assistance-for-the-unemployed by Ioana E. Marinescu
https://wol.iza.org/articles/impact-of-monitoring-and-sanctioning-on-unemployment-exit-and-job-finding-rates by Duncan McVicar
https://wol.iza.org/articles/what-effect-do-vocational-training-vouchers-have-on-unemployed by Anthony Strittmatter
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