Forecast: Unemployment to rise to 100,000 by 2026

The Labour Movement’s Economic Council predicts a rise in Danish unemployment, with figures expected to reach approximately 100,000 by 2026, despite the current record lows. However, analyst Frederik Olsen emphasizes this is no disaster, highlighting that unemployment rates will still be lower than pre-COVID years. Earlier forecasts predicted a sharper increase, indicating a more positive recent development in the Danish economy and labor market. The economy is projected to grow steadily, with a 0.9 percent increase in 2023, rising to 1.9 percent in 2025, and 1.6 percent in 2026. Despite the growth, it won’t be sufficient to prevent a rise in unemployment, especially as sectors like the pharmaceutical industry, after high growth, may downshift. With higher savings and indications of a stable housing market, analysts do not foresee a severe downturn or economic slowdown.