End of employment record streak could be near

Recently, employment was a success story in Denmark with continuous monthly records for the number of wage earners. However, according to Statistics Denmark, employment dropped by 1,500 in August, marking the largest decline since January 2021 and the first consecutive monthly fall in a long time, noted Las Olsen, chief economist at Danske Bank. He proposed that the awaited slowdown in employment seems to be materializing, even though the August decline may not repeat consistently. Tore Stramer from Dansk Erhverv highlighted a decrease in new job ads since early this year as a sign of decreased labor demand. Meanwhile, the annual wage growth in the private sector is around 5 percent, considered high. Nykredit’s Palle Sørensen expects a short-term employment rise followed by declines as the economy cools. As of the report, there were still 22,400 more wage earners than the previous year, totaling 3,021,700 workers in August.