Experts are nervous about the predicted predictions for Denmark’s economy in the coming months. reports DR.
Among their concerns is the rising unemployment on the back of a doubling of vacancies.
These omens do not bode well for the future, economists say, although there is no need to panic just yet.
“We have been through a long period where growth has been slowing and we have seen unemployment rise. It can give rise to small nervous twitches,” says Jeppe Juul Borre from Arbejdernes Landbank.
“But there is nothing to suggest that the bottom has been knocked out of the labor market.”
Early economic indicators
For economists looking to predict downturns in the economy, job postings are usually the way to go, as they provide an earlier indicator of potential variations compared to other markers.
In March, 30,977 new jobs were advertised in Denmark – an increase of 20-30 percent compared to pre-pandemic figures of between 20,000 and 25,000. On top of this, unemployment is creeping up at a rate of about 0.1 percent per month.
“Job postings respond a little faster to fluctuations than the employment numbers,” Borre said.
“This is because it is faster to make a decision not to hire a candidate, or to re-employ an employee, rather than to dismiss an employee. Employment figures can take up to a year to respond to changes in the economy.”
What the experts say is one thing. But a layman may wonder if the labor market takes into account the increasing number of people without jobs.
Dansk Erhverv has recently observed that people are being turned away from care jobs for the elderly, despite increasing demand for care staff.
EU have also commented on the high proportion of Denmark’s highly educated immigrants who are employed in unskilled jobs.
It certainly begs the question: could more be done to get the right people working in the right jobs?
Source: The Nordic Page