Politics and Analysis
Danish Model Renders Danes Immune against Corona Uncertainty
12. November 2020
Opinion
New EU report indicates Danes are thriving despite the corona crisis. In fact, Denmark is the country in the EU with the highest level of job security, greatest confidence in the future and best mental health. Danes are also most optimistic about their own financial situation.
Europe – along with the rest of the world – is fighting against the greatest pandemic the planet has seen in the last 100 years. A pandemic that has had major consequences for both the business and wage earners. In Denmark, the financial consequences of the pandemic bring to mind the global financial crisis and the major losses suffered then by Danish businesses and wage earners. The corona crisis has created tremendous uncertainly on the labour market in general, where employees across Europe worry if they will be able to keep their jobs or if their workplace might have to close.
Such bleak prospects notwithstanding, Danish wage earners have far more confidence in the future than their colleagues across Europe. This has emerged in a new report published by Eurofound, which has asked European wage earners about their current situation and opinion of the future. The report clearly indicates that the Danish labour market model provides stability and security — even in the middle of the corona crisis.
When Danes are asked about their opinion of their own job security — the probability of losing their job within the next three months — only 4% of them respond that they believe that there is a danger that this will happen. This is the lowest level in the EU. Far lower than in, e.g. Italy where as many as 13% feel this way.
Danish wage earners’ optimism about their own finances is also far higher than that of the rest of the EU. Only 11% of Danes expect their financial situation to deteriorate. In, e.g. Croatia, almost one in two respondents expects their financial situation to deteriorate.
Danes’ confidence in the future also beats other countries. More than 70% are optimistic about the future. In this category, Denmark is stable as opposed to, e.g. France, Italy and Portugal, all of which are at the bottom, with levels of 30-45%. This means that nearly 50% fewer Italians look at the future with confidence compared to Danes. These countries are also characterised by the fact that they have labour market models that differ from the Danish one.
The report also shows that mental health among Danish wage earners is the best in the survey.
To what do we owe this excellent score? One possibility is the Danish model.
Because Denmark operates an incredibly efficient labour market model. With its great adaptability and dynamism, the Danish model has repeatedly shown that it is capable of handling major social challenges. Yes, we could perhaps even say that the Danish model has rendered Danish wage earners immune against corona uncertainty.
The results speak for themselves. Employers and employees have entered into as many as seven tripartite agreements while the corona crisis was raging in Denmark. These include, e.g. the furlough scheme, agreements on division of labour and benefits for parents with children who have not been able to attend school, etc. The many tripartite agreements between the social partners have been a source of certainty in uncertain times. Both for businesses and wage earners. The Danish model has proven to be resistant. Even in times of crisis, it has delivered certainty and flexibility. And it will continue to show the rest of Europe how best to navigate a financial crisis.
This is not necessarily the entire reason why Danes feel such a level of security during the crisis. But it is definitely part of it.