Labour Market: The Different Facets Of The Danish Model
BNP Paribas | Jul 26, 2017 03:58AM ET
Denmark’s flexicurity system, which protects individuals rather than jobs, is often cited as being exemplary. Denmark, which had an unemployment rate of 5.7% in April, boasts growth that is richer in terms of jobs than many of its European partners.
However, the sensitivity of employment to economic trends carries certain risks if the cycle turns lower. Employment tends to fall heavily on the downside. This applied in particular during the 2008 crisis when the 7% decline in GDP between the end of 2007 and the second quarter of 2009 was accompanied by a contraction of over 5% in employment between year-end 2008 and the first quarter of 2010. The unemployment rate more than doubled in the space of two years. It went up from 3.1% at the beginning of 2008 to 7.5% at the beginning of 2010. This reaction was stronger than that seen in other European countries.
by Catherine STEPHAN
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.