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Territorial Review Copenhagen - Region Hovedstaden

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education is almost 66% – compared to less than 30% for persons of Danish<br />

origin. Family background partly explains the dropout rate in academic<br />

upper secondary education, but not in vocational education.<br />

Shortage of highly skilled labour<br />

Unemployment in <strong>Copenhagen</strong> is very low, although the figures conceal<br />

some unused potential. The unemployment rate in <strong>Copenhagen</strong> stood at 5%<br />

in 2007, the lowest rate in more than three decades, and continued to<br />

decrease well into 2008, reaching a monthly unemployment rate of around<br />

2% in the summer of 2008. Few metropolitan areas in the OECD have lower<br />

unemployment rates. The combination of low unemployment rates and high<br />

participation rates suggests that the labour force is well-utilised. The<br />

participation rate in <strong>Copenhagen</strong> was almost 80% in 2005; the seventhhighest<br />

participation rate among 78 metropolitan areas in the OECD. High<br />

participation rates can be explained by increased female labour participation<br />

rates, in part supported by government policies that include child care<br />

facilities and the right to maternity leave until children reach 9 years old. 17<br />

The female participation rate in <strong>Copenhagen</strong> in 2005 was ranked 2 nd out of<br />

39 metropolitan areas in the OECD. Certain demographic groups could,<br />

however, be better used, in particular elderly people, some of those<br />

receiving disability payments and immigrants (see also section below).<br />

Labour market shortages in Denmark have made hiring more difficult in<br />

the last few years. Hiring problems are reported in certain health<br />

professions, the welfare sector, hotels and restaurants and graphic design. A<br />

further tightening of the labour market is forecast in <strong>Copenhagen</strong>, with<br />

projections through 2015 predicting shortages of doctors, nurses, school<br />

teachers, and social and health care assistants (Madsen and Lundtorp, 2006).<br />

This could lead to increased mobility in the regional labour market, but<br />

given the tight labour market nationally, this will probably not bring much<br />

relief. A shortage of 14 000 qualified engineers is estimated by 2020<br />

(Ministry of Science, Technology and Industry, 2007). Although the<br />

Øresund <strong>Region</strong> could provide some workers, labour market shortages are<br />

also predicted at the Øresund level. In <strong>Copenhagen</strong>, labour market shortages<br />

could lead to losses in contested markets, such as tourism and product<br />

technology, and reduce its capacity to innovate. Although the global<br />

financial and economic crisis is expected to increase Denmark‘s<br />

unemployment rate, no easing is expected in the above-mentioned sectors.

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