Indicators point to slight rise in unemployment

Unemployment in Denmark is expected to rise slightly in February, with a forecasted increase of 300, totaling 86,900 unemployed, according to Statistics Denmark. Over the last 18 months, unemployment rose in 15 out of 16 months. Despite this, the labor market remains strong, as employment reaches new highs, indicating no cause for alarm, states Jeppe Juul Borre, Arbejdernes Landsbank’s Chief Economist. Erik Bjørsted, Chief Economist at Dansk Metal, highlights the ongoing competition for labor, with more diverse groups entering the workforce. He anticipates that this trend will persist, improving matches in the job market and potentially leading to higher wages. Additionally, the labor shortage may incentivize companies to automate or digitize workflows, enhancing productivity and future competitiveness.