Record low number of welfare recipients

In Denmark, the number of individuals receiving welfare benefits has reached a record low at 91,300—a figure that has nearly halved since 2015 and the lowest since records began in 2007, according to Statistics Denmark. The ongoing decrease in welfare recipients, except for temporary increases during the initial COVID-19 lockdowns in spring 2020 and the arrival of Ukrainian refugees in spring 2022, is surprising amidst economic turbulence, high prices, and rising interest rates. Erik Bjørsted, Chief Economist at Dansk Metal, attributes this to high employment levels and labor shortages leading to more welfare recipients finding jobs. He notes significant benefits, such as improved family finances, better lifetime prospects for children, and considerable savings for the treasury—260,000 kroner per person moving into full-time employment. However, he criticizes the government’s welfare reform, which reduced benefits for 10,000 people but is expected to have a minimal impact on employment.