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The Danish job board Jobindex said that job vacancies in the country posted online have declined since the end of last year, going in the “wrong direction” while GDP in the first quarter was “not enough” to strengthen the labour market.
The company, which monitors job postings in Denmark but also across several other countries in Europe, said that the Danish labour market was “fragile” after the rise in jobs vacancies experienced in 2010 and 2011 has finally slowed down this year.
In December, jobs posted online declined to 16,000 and in May 2012 this was even lower at 14,500. “There is no doubt that the long period of no real growth in the Danish economy is now making its mark on the Danish labour market,” the company said.
In the first quarter, GDP in Denmark grew by only 0.2% year-on-year and the firm said this was not enough to ensure good growth rates in employment, as in the quarter this has also dropped by 15,000. It warned that the decrease in employment may continue into the next quarters as economic uncertainty has also increased.
Jobindex said the decline of job ads in May was partly due the low GDP growth rate as businesses have become more cautious in hiring new staff during periods of economic insecurity. Economists in the country have also recently warned that GDP growth was not robust enough although Denmark broke out of recession in the first quarter.
This comes amidst reports by the organisation for Economic Cooperation and Development which said last month that unemployment in Denmark will this year rise to 7.6% from 7.4% last year.