Denmark to lose 40,000 jobs next year if the economic crisis continues


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Monday, 08 August 2011
On a general summation, the Danish economy is said to be okay. In the spring the general pauses of the economy showed several sectors in which the Danish economy show signs of buoyancy but in the job front the news are not that very rosy in the long run.

Even though the OECD predicted acceptable growth rates in several countries, including Denmark, the Danish government also thought that Denmark is coming out of its double dip recession. All seemed to  look great – yeah? Nope!

“Since May, we have had a series of numbers for the Danish economy, which shows that there is not much in private consumption, and on top of that now, comes the problems of the international economic outlook which is not good,” says director of a Danish  Labour Movement (AE), Lars Andersen.

AE has just produced a new analysis for the Danish economy which show that if economic growth falls internationally with just one percentage point this year and next year, so will Denmark lose 40,000 jobs and lose wealth worth Dkr30 billion in 2012.

“Both politically and economically, it is bad, when economic crises translate into more unemployed,” says former senior economics adviser and professor at Aarhus University, Torben M. Andersen.

“From previous crises, we know that it especially hurts socially and economically, when a crisis translates into a significant increase in long-term unemployment. Therefore, there may be reason to discuss how to resolutely avoid that some groups don’t get caught,” he says.

Hence the need for the government to comes up with a stimulus package, according to Lars Andersen of AE. He offers three suggestions for what the government must put into a growth package:

“Take the savings on education and research off the table, plug in the public investment and provide some temporary tax breaks to businesses investing.
By Team

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