Sickness absence in Denmark rose sharply during the Covid pandemic, according to figures from Insurance and Pension Denmark (I&P Denmark), possibly jeopardising citizens' connection to the labour market.

I&P Denmark director of insurance and digitalisation, Thomas Brenøe, said that sickness absence “exploded” during the Covid epidemic and “unfortunately sickness absence has not returned to the old level”.

“Long-term sickness absence of 26 weeks and more has remained at a high level. Long-term sickness absence now accounts for around 30 per cent of all sickness absences. This is deeply worrying,” he added.

He also pointed out that for many citizens; the long sick leave can end up removing the attachment to the labour market completely.

“Firstly, it is a great loss for the person on sick leave himself, and it is of course also a loss for society when talented people lose their ability to work. It is a big and real social problem,” Brenøe said.

I&P Denmark examined wage earners 6 months after they have completed a sickness benefit course and found that almost 75 per cent are back in the labour market, while almost 15 per cent are either back on sickness benefits or in job clarification processes.

The company said that if this group re-joined the workforce, there would potentially be a “significant” benefit to society, with I&P Denmark estimating that almost 15 per cent corresponds to just over 7,000 wage earners.

“We know that for many citizens, the long absence due to illness can end up removing the attachment to the labour market altogether,” Brenøe said.

“Both humanly and financially, there is great potential in helping these people return to the labour market. It is a key task for the public sector to help individuals return to the labour market.

“As an industry, we also have companies that develop tools to supplement these efforts in the best possible way, so the interaction is important.”

I&P Denmark’s calculations also pointed out that Danish society could gain more than DKK 450,000 per person per year if an ordinary wage earner were in work rather than on sickness benefits.

The calculations also showed that if it is possible to prevent a return to illness for all the more than 7,000 wage earners, there is a potential social gain of more than DKK 3bn annually.

“We have an untapped potential, where every single sick leave we can prevent or every single person on sick leave who can return to work is a win-win situation for the individual employee and for society,” Brenøe added.

“We owe it to us to get to grips with this. There are far too many who drop out of work altogether after a long-term illness.”

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