Record low in Denmark’s social security recipients

Denmark has recorded its lowest number of social security recipients ever, with only 88,400 people receiving benefits at the end of the second quarter, a drop from the previous quarter and half the number from a decade ago. This decline is credited to a strong job market, particularly after a post-COVID economic boom that created ample job opportunities for social security recipients. Chief Economist Erik Bjørsted from Dansk Metal hailed this as a significant socio-political advance. However, Steen Nielsen, Vice Director of Dansk Industri, points out a less positive aspect, noting that the number of people on public assistance has remained virtually unchanged for the last 18 months. This implies that many social security recipients may have shifted to other public benefits, such as disability pensions, which have markedly increased over the past five years. Hence, the reduction may not entirely be a success, as temporary social securitymight merely be replaced by permanent withdrawal benefits.