Danish unemployment just keeps rising but no panic yet

Tuesday, 31 July 2012
Danish economy is not as struggling as before but unemployment is rising as shown by June - May figures, according to seasonally adjusted official data.

On the whole, Denmark has so far defied the negative trend hitting the rest of Europe, but all views and reports show that unemployment will exceed 6.2 per cent for the first time in eighteen years, new official figures from Statistics Denmark show.

Unemployment rate from May to June increased by 1,500 people, so 164,200 were unemployed. Gross unemployment rate for June is now at 6.3 percent, against 6.2 per cent in May. Unemployment figures have been converted to full time and adjusted for normal seasonal variations.

The levels have remained stable between 6.1 and 6.2 per cent, since February 2011. Some analysts say that the new figures should not be an alarm bell right away, because this is a slight increase. That does not however mean that there should be relaxation. "Although unemployment is stable with a small rise, it is unfortunately too early to call off the crisis on the labour market. With the current growth outlook for the Danish economy, we expect that unemployment will rise over the coming months, "said Steen Bocian, chief economist of the Danish Bank, in a commentary, according to Danish business daily Borsen.

"European debt crisis has thrown Europe into renewed recession, and although one might wish that we were not affected by what is happening in countries like Greece, Spain and Italy, we must unfortunately note that experience in recent years is that there is a very violent contagion," he adds

At this moment, the Swedish unemployment rate remains very high at 8.8 percent, for an economy that is growing about 2 percent
By Scancomark.se Team

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