Danish medicine to support employment

Despite soaring inflation and rising interest rates, the Danish labor market has remained resilient in recent years. According to a new forecast from The Danish Confederation of Trade Unions’ Economic Council (AE), employment will continue to grow in 2025 and 2026, albeit at a slower pace, partly due to a strong pharmaceutical industry. AE’s chief economist, Sofie Holme Andersen, believes the growth in the pharmaceutical sector, including companies supplying it, has a ripple effect on the economy. Novo Nordisk, a major player, has significantly expanded its Danish workforce. Increased private consumption is anticipated as purchasing power is restored, also contributing to employment. Employment is expected to grow by 9,000 in 2023 and 2,000 in 2026. Uncertainties in the forecast remain due to potential U.S. tariffs on European goods, including those from Denmark, as threatened by President Donald Trump. However, many large Danish companies like Novo Nordisk manufacture substantially in the U.S., potentially lessening the impact.