The latest on the economy and jobs of Denmark in 2021

Interested to work overseas? How about landing a job in Denmark? We know you would want to know why Denmark is a great place to work.

Some of the reasons we recommend Denmark to be your employment destination are the following:

• Denmark is among the top countries that offer a superior work-life balance.
• Denmark scores the highest in the following areas:
  • Overall life satisfaction.
  • Community
  • Civic engagement and governance
  • Education
  • Environment
  • Access to services such as healthcare and quality of services
  • Health, wellbeing, and safety
  • Housing
  • Average income
  • Job vacancies and job prospects
• Danes are among the happiest people in the world.
• Danes work for fewer hours than other countries.
• Other major locations in Europe are near to Denmark and there are various travel options available.
• The country has been famed for one of the lowest unemployment rates in the world.
• Denmark has a unique labor market model that balances that strikes a perfect balance between employers’ needs and employee welfare.
• Danes have a very positive outlook on life. Individuals in the country keep their harmony with their environments.
• The country has a high ethos, low crime rates, as well as one of the best standards of living.
• Employers in Denmark grant flexible working hours. Employees work their allotted hours or less and find more time for their families.

Having said this, it’s apt enough to check out the present economic and employment status in the country. Here’s more about that.

Denmark has an open economy. The country’s economy is prosperous but heavily dependent on foreign trade. This caused its worst fall in GDP in the first half of 2020 owing to the COVID-19 crisis. The fall in GDP was recorded as 7.7% in Q2 of 2020.

In the second half of 2020, the country made a partial recovery. Private consumption in the country drove this trend. There was an overall dip of 4.5% as per the IMF estimate. With the normalization of domestic and foreign demand, Denmark’s GDP is expected to expand by 3.5% in 2021. In 2022 it’s expected to touch 2.5%.

The European Commission forecasts that Denmark’s private consumption will get back to 4.7% in 2021. In 2022, this is expected to be 3%.

Denmark has quite healthy public accounts. The country’s debt-to-GDP is one of the lowest in Europe. However, this increased to 34.5% in 2020 due to the measures taken by the Danish government. These measures were meant to address the COVID-19 crisis.

This ratio is expected to increase to 39.3% in 2021 and 42.6% in 2022. This will be owing to:

• GDP contraction
• High-scale stock-flow adjustments owing to significant tax deferrals and government deficit

As the budget revenues have fallen in tandem with fall in tax revenues. The Danish government has installed an emergency fiscal package. The package is worth around 4.5% of GDP. This prompted a budget deficit of 0.8% in 2020. As the global economy stabilizes, Denmark’s deficit will also do the same. This is projected at 1% in 2021 and 0.5% in 2022.

Looking at the sectors of industry in Denmark, the agricultural sector employs 2% of the population and accounts for 1.4% of GDP. The industry sector employs 18% of the active Danish population and contributes 20.9% of the GDP. The services sector employs 80% of the population and contributes close to 64.9% of GDP. The banking sector is the strongest in the service sector.

With around 33.3 thousand registrations for unemployment as of November 2020, employees at work in cleaning, travel agencies, and related services contributed the highest number of people who are unemployed. This is followed by workers in the trade sector. This sector recorded close to 30,000 dismissals. In the restaurants & hotel sector, 23,400 dismissals were recorded.

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