Advertisement

Danish employment drops for first time in 18 months

Ritzau/The Local
Ritzau/The Local - [email protected]
Danish employment drops for first time in 18 months
July saw an increase in unemployment in Denmark for the first time since the beginning of 2021. Photo: Mathias Eis/Ritzau Scanpix

The number of people in employment in Denmark fell in July after 17 consecutive monthly increases, according to new national data.

Advertisement

New figures from national agency Statistics Denmark show that there were 5,000 fewer people employed in July compared to the month before.

That decrease follows an extended period during which the record for the total number of people working in the country was consistently broken.

Almost 200,000 additional people were working in Denmark in June 2022 compared to January 2021.

Advertisement

High employment rates are often cited by economists as indicators of a strong economy. The total number for employment in July was 2,953,000 persons.

According to Statistics Denmark, the figure of 5,000 fewer employed comes almost exclusively from the sector defined as “public administration and service” (offentlig forvaltning og service).

Another sector, “businesses and organisations” (virksomheder og organisationer), was stable between the two months.

The new number need not set off any alarm bells but could indicate that a surge in employment subsequent to the coronavirus crisis may have peaked during the summer, an analyst said.

“This high conjuncture with the corona crisis in the background seems to be over. Things aren’t moving forward quite as quickly at the moment,” Nykredit senior economist Palle Sørensen told news wire Ritzau.

“And we are now beginning to be put under strain by the energy crisis that has come to Denmark and Europe in particular,” he said.

“We think that the energy crisis will be the trend-setting event in the coming months: How much individuals should reduce private consumption to pay these record-high energy bills that are being dropped into their post boxes,” he said.

The Statistics Denmark figure for employment is corrected for seasonal factors.

More

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also