Danish graduates continue to struggle with high unemployment – The Post

Danish graduates continue to struggle with high unemployment

Companies are reluctant to invest in creating new jobs, contends researcher

Graduates with a degree from short-term higher education courses have the greatest difficulty finding a job (photo: iStock)
January 30th, 2017 4:18 pm| by Lucie Rychla
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Recent graduates in Denmark struggle with high unemployment, reveals a new analysis by the Danish economic policy institute Arbejderbevægelsens Erhvervsråd (AE).

According to the think-tank, unemployment rates among recent graduates are twice as high today than before the financial crisis.

Over 13 percent of all new graduates in 2015 were jobless six or more months after they had completed their education, while the rate was only 6 percent some 10-15 years ago.

“The crisis is not over yet when we look at the graduates’ unemployment [rate],” Mie Dalskov Pihl, the chief analyst at AE, told Information.

“For the first time, we can also see that the group with the highest unemployment rate are those [who have completed] a short-term higher education [course], which is something we need to keep an eye on.”

READ MORE: Denmark has fewer long-term unemployed than the rest of Europe

Companies not hiring 
According to Pihl, 19.4 percent of graduates from short-term higher education courses – especially business academies – were not able to find a job six months after they had graduated in 2015.

The same applied to 18.5 percent of university graduates.

Researcher Henning Jørgensen from Aalborg University contends private companies do not reinvest profits in creating new jobs, but instead spend the extra money on quick investments or higher pay-outs for shareholders.