Denmark: Employment Overview
June 24, 2018
By GoinGlobal
Denmark has a tight labor market and many employers struggle to find skilled workers. Last year, the economy gained nearly 50,000 new jobs. Many industry sectors in Denmark, including health care, are highly regulated and subject to restrictions regarding licensing and competition. The website of the Ministry of Higher Education and Science lists what occupations in Denmark are considered regulated, what qualifications are needed to work in Denmark for each of these occupations and the proper Danish authorities to contact.
Short Term
Denmark’s unemployment rate is currently 5.2%, much lower than the 8.6% unemployment rate for the euro area as a whole. However, youth unemployment in Denmark is much higher, around 10.4%. The economy is expected to see sustained and steady growth this year and next, supported by strong export and construction markets. Approximately 50,000 new jobs are predicted for this year.
Long Term
Denmark’s economy is projected to expand by an annual rate of 2% through 2020, and then to slow to 1.4% through 2025. Employment is expected to hover at around 5.6% next year.
The Danish government’s recent National Reform Programme outlines an economic strategy to guide the country through the rest of this decade. The report predicts the county’s labor market will gain another 140,000 jobs by 2020. An additional 64,000 jobs are predicted by 2025.
By Sector
The majority of new jobs created over the past several years are in the private sector, because job growth in the public sector has declined. Private sector employment includes both private and public corporations, and private non-profit and international organizations. About a third of all public sector employment is in social protection. Another quarter of the public sector workforce is in health services, and 20% work in education.
While employment in the private sector grew by 1.3% or nearly 37,000 workers, over a recent 12-month period, public sector employment grew by only 1,500 workers, or 0.2%. Between 2010 and 2015, employment in the private sector increased by an annual average of 14,000 jobs. Conversely, employment in the public, or government, sector declined by 5,000 jobs per year over the same time period. The private sector is expected to continue to drive employment growth.
By Region
Copenhagen, Denmark’s capital, is home to 31% of the population and generates 40% of national GDP. Between 2005 and 2015, 75% of all new jobs in Denmark were created in its capital. Key growth industries in the city include ICT, life sciences, green industries, maritime and creative industries.
Other major cities include Aarhus, Odense, Aalborg and Esbjerg. Aarhus, Denmark’s second-biggest city, is one of the country’s largest business hubs with a strong multinational presence. Main industries include ICT, food, architecture, and design. Aarhus is also a university town and home to Denmark’s largest industrial port. Odense is the third-largest city in Denmark and a center for robotics and industrial automation. It is home to the Danish drone center and is becoming a hub for health-tech. Jutland’s city of Aalborg is primarily an industrial and trade city, while Esbjerg, located on the west coast of Jutland, is an important center for Denmark’s fishing and energy industries.
Of Denmark’s major cities, unemployment is highest in Aalborg (5.6%) and lowest in Esbjerg (4.1%).The capital region (Hovedstaden) and southern Denmark (Syddanmark) have seen the highest rates of growth in recent years. The capital boasts the highest number of vacancies, followed by the southern and central (Midtjylland) regions.