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What does Denmark’s GDP drop tell us about jobs and the economy?

Denmark has probably just experienced a ‘historic’ drop in GDP, but what are the real-life consequences? Here are a few factors to consider.

Published: 17 August 2020 12:56 CEST
What does Denmark’s GDP drop tell us about jobs and the economy?
Photo: Kristian Djurhuus/Ritzau Scanpix

What has happened to Denmark’s economy?

Denmark's gross domestic product (GDP) – one of the main indicators of the health of the national economy – fell by 7.4 percent in the second quarter of 2020 compared with the first quarter.

The Danish economy also shrank, by around 2 percent, in the first quarter of 2020, meaning the country is now technically in a recession.

The latest figures are according to national database Statistics Denmark, and were released last week.

Note that these are not final statistics. The GDP figures from Statistics Denmark are preliminary and will be reviewed as more information comes in.

READ ALSO: Denmark's economy suffers 'historic' GDP drop in second quarter

How will it impact every day life?

Most of the effects of such a shrinkage of the economy are likely to be felt indirectly at this stage, according to Casper Schrøder, economics correspondent with national broadcaster DR.

“Many will not be experiencing a direct impact from the (economic) crisis here and now. They have not been fired and are receiving the same wages. But the crisis will affect them indirectly, and that will become clearer in the coming time,” Schrøder said to DR.

Those impacts include a slowing down of pay rises and the knock-on effect of this — reduced tax revenues at local and national level — will eventually be evident in public services, he explained.

 

Are jobs going to be lost?

There is no “general” need to worry about increasing unemployment, according to Schrøder’s assessment.

“We are not going to see mass unemployment across sectors in Denmark,” he said to DR.

But some redundancies are likely in the coming months in the most hard-hit sectors, he added. Those sectors include those which are reliant on large gatherings for income.

READ ALSO: Here's what you need to know about Denmark's 'phase four' reopening

Industries which have high levels of trade with countries where economies have been hit even harder than Denmark could also face job losses, Schrøder said.

What are the prospects for short-term recovery?

A tough period is expected in the autumn, according to the DR analyst.

“I think this will be an autumn in which some companies take difficult decisions to let staff go or maybe close completely because they can now see they can’t keep their heads above water,” he said to the broadcaster.

Denmark is a “small, open economy” that “coped very well with the (coronavirus lockdown) crisis” he added, noting that the situation was worse in other countries.

But that could mean those countries may struggle to afford Danish products, he pointed out.

These are the latest available flash estimates of GDP growth in the second quarter from Eurostat:

EU average: -11.9
Belgium: -12.2
Czechia: -8.4
Germany: -10.1
Spain: -18.5
France: -13.8
Italy: -12.4
Latvia: -7.5
Lithuania: -5.1
Austria: -10.7
Portugal: -14.1
Sweden: -8.6

“Such a big drop (in GDP) in a short time is serious enough in itself, but the big concern now is about how long it will take for the economy to recover. After all, this is ultimately about people's opportunities to get a job and a salary that can give them a good life,” Schrøder also said.

 

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WORKING IN DENMARK

Ten ways to improve your chances of finding a job in Denmark

Job searching in Denmark can be a daunting and lengthy process with many hurdles to overcome. The Local spoke to Kay Xander Mellish, author of 'How to Work in Denmark', for her tips on submitting a successful CV and application.

Published: 12 January 2023 09:44 CET
Updated: 24 October 2023 16:36 CEST
Ten ways to improve your chances of finding a job in Denmark

CVs in Denmark often have certain aspects of layout, presentation and content in common. By writing a CV that sticks to some of these recognisable customs, you may improve your chances of catching the eye of a potential employer.

1. Length

“Keep it to one excellent page, or two if you’re more senior. I’d say if you’re aged 30 and under, one page will be enough. Only add the jobs that are relevant. Employers don’t want to hear about that restaurant server or babysitting job if it’s not relevant to the role,” Mellish said.

2. Format

At the top of your CV, a paragraph describing your experience, skills, education and character is a common way to lead into a CV. This text can be adapted depending on the job you’re applying for and how you want to present your skills.

“Add three adjectives about yourself that you can support with an example, rather than ten adjectives with no story. For example, say you are innovative for this reason. People don’t like hot air in Denmark,” Mellish said.

Aside from the profile text, chronological lists of qualifications, relevant employment history and other relevant experience should be kept brief enough to fit the one to two pages.

3. Show your personal side and a photo

It is expected that applicants include a section about their hobbies, even family situation on their CV in Denmark, as well as a photo, to give a sense of who they are as a person.

“Danish employers are interested in you as a human, more so than employers in other countries so include information about yourself, including your age and your hobbies.

“Choose a good quality photo that is not too serious but shows you looking friendly and approachable,” Mellish said.

4. Story telling

“Think in terms of story telling”, Mellish advised. “Pure letters and numbers don’t mean a lot to employers in Denmark, they need to know what projects you’ve done, what role you played and what kind of person you are through your CV.

“So rather than writing ‘I have these grades’, it’s better to say ‘I worked on this project, it took this long, I achieved this'”, Mellish said.

5. Hit the ground running

Mellish called this “plug and play”, where you show you will slot right into the company and get going with the role.

“When employers are reading your CV, they want to know what you can do on day one of the job. Sell your ability to solve someone’s problem. You need to give the impression you can add value straight away.

“In Denmark the average length of time in a job is two and a half years, because you can take your pension when you move, so employers don’t want someone they need to spend time training,” Mellish told The Local.

READ ALSO: Five tips for writing an effective Danish CV

6. Teamwork

“Group work is very important in Denmark, more than individual achievements. So talk about your teamwork and how you worked with a group to produce a good business result. It shouldn’t be ‘me, me, me’ – that’s a turn off,” Mellish said.

7. LinkedIn

“People in Denmark love LinkedIn so you need a fabulous LinkedIn profile with a good picture. Before anyone calls you for an interview they’ll have looked at your LinkedIn profile.

“In your profile, include the storytelling, explaining the projects you’ve worked on. If your job involves a uniform, I recommend wearing it in your LinkedIn photo so people get that impression of you right away. Your background photo should also be work-related, not rainbows or puppies. Use it to tell the story of who you are,” Mellish advised.

8. Unsolicited application

This is when you approach a company or department you would like to work for, without a job being advertised. The Danish term for it is uopfordret ansøgning. 

“Many people make contact on LinkedIn and ask to meet for a coffee, where they chat and rather than pitch for a job, they ask if the person knows anyone looking for someone like them. Danish employers welcome this and many people are hired this way,” Mellish said.

Another way to network is to join a union, Mellish advised. They often have career events but can also help read your contract when you get a job offer, or help with any problems in the workplace. 

9. Ring the recruiter

The phone number of the hiring manager will often be in the job advert. Mellish advised finding a quiet place to ring them from and spending ten to fifteen minutes asking some good business questions.

“This also helps you work out if you might want to work for this person,” Mellish said.

“Send your CV within 24 hours of the phone call and mention you spoke to them in your application,” she added.

10. Patience

“On average it can take six months to find a job in Denmark. If it’s under this, you’re lucky. If it takes a year, it’s not you, it just takes a long time because employers are looking for someone to fit into their team.

“I wrote 100 letters, I got ten responses, three interviews and one job which I had for eight years,” Mellish told The Local.

“Danish employers are not always good at getting back to you. If you don’t hear anything, just keep applying for other jobs. If you sent an application on June 1st, you could send a follow-up email on June 15th, then you’ll have to leave it and move on,” she advised. 

Kay Xander Mellish’s book ‘How to Work in Denmark’ offers both job-searching advice and tips on how to succeed in the Danish workplace.

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