From the middle of the 1990s the Danish economy has been characterised by a longlasting upturn. After years of high and generally rising unemployment, the picture changed markedly from 1994. Since then employment rose considerably, while unemployment dropped to one of the lowest levels in the EU.

In recent years, however, Denmark has seen a modest increase in unemployment, and a corresponding recession in economic growth. Compared with most other EU countries, Denmark has a very high rate of economic activity and a high percentage of employment. These high levels, among other things, reflect that the public sector in Denmark undertakes many of the tasks in relation to care for children, the sick and the elderly which in some other countries are the responsibility of the family.

The development in employment and unemployment is closely connected with the economic development described in the next section. This is followed by an account of some of the main conditions on the Danish labour market.

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