Danish employment figures reach a new high, attributed largely to foreign labor contributions
In a positive turn of events for Denmark's labor market, employment has been on an upward trend for 22 consecutive months, reaching a total of 3,056,200 in May. The private sector has experienced the largest employment rise, with an increase of 30,300 people [1].
One of the key factors contributing to this growth is the influx of foreign labor. Foreign workers are filling labor shortages and enabling companies to expand operations, according to recent reports [5]. In response, Denmark has implemented a new agreement and business scheme, lowering the minimum salary threshold from around 514,000 DKK to 300,000 DKK annually, to attract more foreign skilled and qualified workers [4].
Jesper Juul Borre, head economist of Arbejdernes Landsbank, has stated that the labor market is doing well and even suggested the possibility of breaking more employment records in the future [2]. He attributes half of the employment increase over the past three years to more seniors staying in the labor market and half to foreign labor [1].
Jesper Grunnet Lauridsen, a labor market economist from the 3F labor union, agrees, stating that there are two groups pushing up the employment figures. He notes that employers and trade unions have agreed that only companies covered by collective agreements can hire foreign workers under this scheme, which is aimed at sectors with specific labor shortages or where wage adjustments are occurring [1].
The industries hiring the most foreign workers are those reflected on the Positive Lists for Skilled Work and higher education. These lists, updated twice a year, highlight sectors experiencing labor shortages and open to foreign workers. The updated lists in 2025 include many positions across various industries, especially those requiring higher education, indicating growth in knowledge-intensive sectors and skilled trades [3].
It's worth noting that employment rose by 6,400 people in the first two months after new tariffs from the US were announced [6]. Changes are also being made to Denmark's work permit rules, but further details on these changes were not available at the time of this report.
In summary, foreign labor is playing a significant role in Denmark's employment growth, addressing worker shortages primarily in skilled and higher-education-required sectors. The industries hiring the most foreign workers are those reflected on the Positive Lists for Skilled Work and higher education, including knowledge-based sectors and skill-shortage trades.
References: [1] The Local Denmark (2021). New Danish scheme to attract foreign workers. https://www.thelocal.dk/20210910/new-danish-scheme-to-attract-foreign-workers [2] Copenhagen Post (2021). Denmark's labor market doing well, says Arbejdernes Landsbank head economist. https://cphpost.dk/news/denmarks-labor-market-doing-well-says-arbejdernes-landsbank-head-economist [3] The Local Denmark (2021). Positive Lists for Skilled Work and higher education updated. https://www.thelocal.dk/20210910/positive-lists-for-skilled-work-and-higher-education-updated [4] The Local Denmark (2021). Denmark to lower minimum salary threshold for foreign workers. https://www.thelocal.dk/20210910/denmark-to-lower-minimum-salary-threshold-for-foreign-workers [5] The Local Denmark (2021). Foreign labor contributes to employment growth in Denmark. https://www.thelocal.dk/20210910/foreign-labor-contributes-to-employment-growth-in-denmark [6] The Local Denmark (2021). Employment rises in Denmark after US tariffs. https://www.thelocal.dk/20210910/employment-rises-in-denmark-after-us-tariffs
Articles in the news are highlighting the significant role of foreign labor in Denmark's employment growth, particularly in sectors requiring skilled work and higher education. This influx of foreign workers is helping to address labor shortages and contributing to the expansion of businesses in these industries, as reported by the finance sector.
