The financial crisis of 2008 impacted on Denmark relatively hard and it experienced a relatively slow recovery (Bredgaard & Madsen, 2018). Therefore, up until 2013 discussions concerning imbalances on the labour market focused on expected skilled labour shortages and labour of those with higher education levels in the medium and long-term.
Since 2013 Denmark experienced a rapid increase in employment and declining unemployment which impacted the policy debate further. Total employment rose by almost 200 000 persons or 7.1% from 2013 to mid-2018, while registered unemployment dropped from 6.6% to 3.5%.
As a result of the debate on labour imbalances, vocational education underwent large-scale reform in 2015. Tripartite negotiations followed in 2016. Again, in 2016, important initiatives between the government and social partners were agreed including improvements in the present system for analysing the labour imbalances (1).
More recently, several political actors also argued the need for foreign labour, including from outside the EU.

(1) Trepartsaftalen II, 2016:4-5 referenced in EU (2018), How low can you go? Measuring labour market tightness in Denmark, by Per Kongshøj Madsen for the Peer Review on “Measuring labour market tightness to improve employment policies and reduce skills mismatches” France, 15-16 October 2018.

The key issue relates to the provision of better information on recruitment challenges that can be used in active labour market policies and by different actors involved in education and business development.
In Denmark the analysis of labour market tightness and skills mismatches is carried out by several institutions that emphasise different aspects of the issue, for example, macroeconomic level balances and overall (im)balance between labour supply and demand (2). In Denmark, the issue has primarily been dominated by a debate on future mismatches between labour supply and demand for those with different levels of education.
However, in addition to looking at the longer-term view of things, statistics are also published on the short-term situation. The Danish Agency for Labour Market and Recruitment (STAR) produces detailed quantitative estimates of regional and local imbalances. To support the day-to-day work of the jobcentres, the unemployment insurance fund, and educational institutions STAR produces the following:

• Regional market balances: Based on a survey of companies, the Labour Market Balance is published twice a year where both the unemployed and general public can get information on labour market prospects for individual occupations in each of the eight labour market regions;
•  Local market balances: STAR also provides a monthly assessment of the balance for different occupations in each of the 90 local jobcentres. This is known as the local jobs barometer. The barometer is based on several sources, including the Labour Market Balance, the workforce reserve (3) and information about vacant positions. It is a two-page printed document and is also published online where the 50 most frequent occupations mentioned in the CVs of the unemployed in the local area are divided into three main groups (good opportunities, balance between demand and supply, and surplus of labour). The aim is to use this information directly in the practical counselling of the unemployed individual.

(2) Such analysis is especially the focus of the Ministry of Finance and of the Economic Council. See EU (2018), op cit.
(3) The workforce reserve is a monthly statistic of the number of unemployed persons with duration of unemployment of at least three months. See EU (2018), op cit.

The aim of the Local Job Barometer is to provide a detailed overview of the local job situation. It acts as a guide to the local unemployed in their job search activity, providing information on the availability of job opportunities for a specific position in the area, and an overview of job opportunities locally. (4)

(4) See https://holbaek.dk/indholdsblokke

• The job barometer is an overview of available jobs in a particular area and provides information on whether job opportunities exist in an area for a specific position.
• For each jobcentre, the National Agency of Labour Market and Recruitment (STAR) issues a job barometer each month, in print and online. The barometer is based on several sources, including the Labour Market Balance (5), the workforce reserve (6) and information about vacant positions. The latter is provided by regular surveys conducted by STAR.
• The job positions included in the barometer are based on the job centre’s registered unemployed and the positions that they indicate they are interested in finding.
• Because the job barometer is based on the preferences of the unemployed and vacancies, each job barometer is current, unique, and local. (7)
• It is a two-paged document that provides a monthly assessment of balance between supply and demand for different occupations in each of the 90 local jobcentres. (8)
  • The first page shows the job opportunities for the 50 most frequent occupations mentioned by the unemployed registered in the jobcentre.
  • The second page can show additional information, for instance about the job vacancies in the region in the last three months. It presents an overall picture where good job opportunities exist, and what positions companies are looking for. The second page may also list the occupations with “less good job opportunities”, where labour supply is greater than demand. For each of the occupations, four closely related occupations are also shown to illustrate that there may be other opportunities for the unemployed.
• The job barometer is part of a set of tools that can be used in the conversation between the PES caseworker and the unemployed person and as a starting point for a discussion of opportunities and goals, providing both input and inspiration to the job search activity of the unemployed. (9)

(5) STAR compiles the Labour Market Balance by combining its own register data of the  registered unemployed, employed and job turnover with a biannual survey among 15 000 companies. On the basis of the survey and the register data, approximately 900 occupations are divided into the five categories: less good job opportunities, good job opportunities, paradox-problems, shortages of labour and severe shortages of labour. For details see the Danish discussion paper to the peer review Peer Review on “Measuring labour market tightness to improve employment policies and reduce skills mismatches” pp. 3-4.
(6) The workforce reserve is a monthly statistic of the number of unemployed persons with duration of unemployment of at least three months. See EU (2018), op cit..
(7) Ibid.
(8) For examples see here
(9) See https://star.dk/viden-og-tal

Outputs

• A monthly two-page publication produced by STAR for each of the 90 job centres, in print and online, presenting the job opportunities for each job centre’s own unemployed.
• A national website has been created with details of the local jobs barometer. Through the website all the job barometers for each of the 90 jobcentres can be accessed.
• Some of the local jobcentres also link to the Local Job Barometer on their own website.

Outcomes
The Local Job Barometer is considered a powerful tool in the conversation between a PES caseworker and a jobseeker that can illustrate the unemployed person’s opportunities in a quick, easy-to-understand and clear way. No systematic assessment has been made. However, the general view of STAR is that the job barometer is regularly used by the local job centers, which is as an indication of its value to them in their work of providing guidance to individual unemployed.