Denmark is technically at full employment and must find ways of expanding its labour force to avoid harmful effects on the economy, Denmark's central bank said yesterday (14 September 2016).
Danish central bank director Lars Rohde. Photo: Liselotte Sabroe/Scanpix
"Unemployment has now reached its 'structural level' ... there are no labour reserves among the unemployed," it said in a quarterly report.
Seasonally adjusted unemployment stood at 4.2 % in May 2016, roughly corresponding to the "frictional" unemployment that accounts for people spending short periods of time between jobs, it said.
The report identified four groups of people that could be used to expand the workforce:
- working people pushing back their retirement
- students
- people on disability pensions
- immigrants
The full copy of the report, in English, is available here on nationalbanken.dk.
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