Surprising increase in Denmark unemployment in March

1,500 more people became jobless in March compared to February, new data from Statistics Denmark shows. This brings total unemployment to 111,800, or 4.1 percent of the total workforce.

Surprising increase in Denmark unemployment in March
File photo: Ida Guldbæk Arentsen/Ritzau Scanpix

After a steady decrease in unemployment since July 2017, the number of people in Denmark without jobs increased in March by 0.1 percent, writes

There is, however, still general job growth in the private sector overall.

“It is surprising that unemployment has increased, because large numbers of people have found work in recent months. We are still seeing impressive job growth in the private sector, so I assume that the increase in unemployment in March is a one-off,” the Confederation of Danish Industry’s deputy director Steen Nielsen said.

“Even with the increase, unemployment in March is still very low. The biggest challenge right now is that it is difficult for businesses to find the employees they need,” Nielsen said.

Statistics Denmark has adjusted the unemployment rate for February down from 4.1 percent to 4.0 percent.

READ ALSO: 16,500 job seekers find work every month in Denmark: DI


Labour shortage hits half of Danish companies in construction sector

A record-high shortage of labour at some Danish companies is exacerbated in some places by a lack of materials, according to new data.

A file photo of construction in Aalborg. As many of half of construction companies in Denmark currently report a lack of labour.
A file photo of construction in Aalborg. As many of half of construction companies in Denmark currently report a lack of labour. Photo: Henning Bagger/Ritzau Scanpix

The construction industry reports a lack of labour at around half of all companies, according to a survey by Statistics Denmark, based on responses from businesses.

In the service industry, which includes restaurants, hotels and cleaning, one in three companies reported a lack of workforce.

Some industries, notable machinery related businesses, also said they are short of materials currently.

The lack of labour is holding the Danish economy back, according to an analyst.

“Never before have we seen such a comprehensive lack of labour in the Danish economy,” senior economist Søren Kristensen of Sydbank said.

“It’s a shame and it’s a genuine problem for a significant number of the businesses which at the moment are losing revenue as a consequence of the lack of labour,” Kristensen continued.

“That is costly, including for all of Denmark’s economic growth. Even though we on one side can be pleased that it’s going well for the Danish economy, we can also regret that it could have been even better,” the economist said in a comment to news wire Ritzau.

Despite the lack of labour, businesses have their most positive outlook for years, according to Statistics Denmark.

The data agency based its conclusions on a large volume of responses from companies related to revenues, orders and expectations for the future.

The numbers are processed into a measure termer business confidence or erhvervstillid in Danish. The October score for the metric is 118.7, the highest since 2010, although there are differences between sectors.

READ ALSO: Are international workers the answer to Denmark’s labour shortage?