Danish employment continues to rise: 2,300 more people at work in May

Denmark's labor market continues its robust expansion, with employment figures for May showing a record increase of 2,300 jobs after seasonal adjustments. This marks the 21st consecutive month of job growth, underscoring the resilience of the Danish economy, even amidst global uncertainties like the war in Iran.

Over the past year, the economy has generated 32,700 new jobs, pushing the total number of employees to 3,087,900. This sustained growth is particularly noteworthy given that industrial employment has decreased by 3,300 positions compared to a year ago. Las Olsen, chief economist at Danske Bank, links this industrial decline to layoffs at Novo Nordisk, but notes that other sectors have maintained cautious optimism and expanded their workforce.

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It is there good reason to believe that they will continue to do so, for there is room for growth in the coming time, also in the part of the economy that does not deal with medicine and export.

Economists predict continued growth, citing potential in areas beyond medicine and exports. Private consumption has risen, though it remains relatively low compared to income, and the housing construction sector is expected to gain momentum. Allan Sørensen, chief economist at Dansk Industri, highlights that the availability of labor has been crucial for this expansion.

Two key groups have significantly contributed to the recent employment surge: older workers remaining in the workforce longer and an influx of labor from abroad. These factors have enabled companies to hire more new employees. In May alone, 1,400 new jobs were created in the private sector, while the public sector added 900 positions.

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Older people, who stay longer in the labor market, and the influx of labor from abroad have made it possible for companies to hire more new employees.