For three straight years, Danish employment has been growing. Also, there is no indication of a slowdown in job growth. Except for finance and commodity extraction, all the main private sector industries are expanding. The jobless rate in Denmark is currently 4.3 percent, which is historically low. At this rate, qualified labor is becoming quite scarce, noted Dankse Bank in a research report. But there is a large reserve of labor outside the unemployment registers, for instant amongst students.
In this backdrop, Danish employment is expected to grow for another year or two; however, the projection carries significant uncertainty, added Danske Bank. Immigration and integration into workforce of those who are at present outside it are amongst the several unknown factors.
Meanwhile, both housing and business investment in Denmark was quite disappointing last year. Rise in business investment usually follows increasing employment, while increased house prices should open the door for additional housing investment. In the first quarter, housing investment grew 4.6 percent. Business investment also increased in the first quarter, ignoring the huge declines in new ship investments. The rising trend is likely to be seen this year.
