Denmark’s unemployment queue shrinks

For the first time in over a year, unemployment in Denmark has decreased. January saw a reduction of 400 in the number of unemployed, bringing the total to 86,200, according to Statistics Denmark. Erik Bjørsted, Chief Economist at Dansk Metal, highlights fierce competition for labor, noting there are fewer than three unemployed individuals per vacancy, which is less than the pre-pandemic ratio of approximately four. Employers have held onto their workforce even amid slimming order books, fearing a labor shortage. Jeppe Juul Borre, Chief Economist at Arbejdernes Landsbank, suggests the labor market has shown strength, indicating a gentle economic downturn ahead. Remaining optimistic, economists predict modest unemployment rises in coming quarters but acknowledge levels will stay comparatively low, as stated by Nykredit Chief Economist Palle Sørensen.