In September, the number of unemployed fell by 600 to 106,600. According to Tore Stramer, the chief economist at Nykredit, positive developments in the Danish economy have helped to shorten the queues at the nation’s job centres.
“The upswing has opened the door to many Danes who have previously had difficulty getting into the labor market. Additionally, the very low unemployment rate has contributed to increased job security for individual Danes,” he said.
September marked the sixth consecutive month in which unemployment numbers fell. Since unemployment peaked during the financial crisis, the number of those without work has fallen by about 60,000.
The overall unemployment rate is at 3.9 percent which hasn’t changed in recent months but remains at its lowest since February 2009. When the unemployment rate doesn’t fall even though the number of those out of work decreases, it’s because more people are entering the national labour market for the first time.
According to Sydbank, it is a positive sign for the Danish economy when the unemployment rate does not fall too much.
“This partly reflects the fact that Danish companies have been proficient in obtaining labour from abroad. Over half of the new jobs created have been occupied by foreign workers, which has played an absolutely indispensable role in the recovery,” economist Søren V. Kristensen said.
Industry leaders, however, warn that the low unemployment figures mean that there is a lack of workers in several sectors, including construction. Those problems are likely to persist for a number of years, said Bo Sandberg, the chief economist at the Danish Construction Association (Dansk Byggeri).
“At the moment, recruitment of competent employees is the biggest challenge in the construction industry. And it is a challenge that is here to stay,” he said.