For members


Are international workers the answer to Denmark’s labour shortage?

Denmark’s low unemployment rate is creating recruitment challenges for Danish companies. A recent government initiative aims to resolve the issue, but some say it overlooks the importance of international labour. 

Are international workers the answer to Denmark’s labour shortage?
Business organisations have called for Denmark to do more to enable companies to draw on skilled foreign labour. Photo by Darth Liu on Unsplash

On September 10th, Denmark became the only European nation with no Covid-19 curbs. Denmark is also one of only six European Union countries whose economy has surpassed pre-pandemic levels, reports Statistics Denmark. And, it is one of only four EU countries where unemployment is now lower than before the pandemic, according to recent figures from Eurostat.

Although this sounds like a hat trick of good news for Denmark, the country now faces a new challenge: maintaining economic growth while facing a severe labour shortage.

Earlier this month, Statistics Denmark announced that the number of job vacancies in Denmark reached its highest level in more than a decade. Data from the Danish Agency for Labour Market and Recruitment from the month of June show 22.5 percent of companies’ recruitment attempts were in vain. 

“It is gratifying that unemployment is falling rapidly in Denmark, but it also means that there will be fewer people taking vacancies,” said Steen Nielsen, head of labour market and policy at Danish Industry (Dansk Industri, or DI), an organisation representing approximately 18,500 companies across Denmark. 

“Without more employees, we will very soon experience a significant slowdown in economic growth,” Morten Granzau, DI’s deputy director, said.

What is Denmark doing about the labour shortage?

When Denmark’s government announced its 2022 budget proposal August 30th, critics claimed the proposal didn’t do enough to resolve Denmark’s labour shortage. Little more than one week later, the government announced a new initiative, Denmark Can Do More (Danmark kan mere I) that aims to increase employment by more than 10,000 people by 2030. 

The initiative consists of several efforts to increase Denmark’s labour force. It cuts the standard monthly unemployment insurance payment and shortens the eligibility period for new graduates to encourage them to join the labour force, requires some migrants to work a minimum of 37 hours per week to receive welfare benefits, and incentivizes employees to work past retirement age, among other policy changes.

It is the first in a series of reform proposals that aim to increase growth and employment in Denmark, according to the Ministry of Finance (Finansministeriet). 

Although Denmark’s business community says the initiative is a good start, it falls short of resolving Denmark’s labour shortage – especially in the short-term. DI, the Danish Employers’ Association (Dansk Arbejdsgiverforening), and the Danish Chamber of Commerce (Dansk Erhverv), among others, have expressed this concern and reiterated the important role of international labour.

“With just over 10,000 more sets of hands, the government only offsets what it has already lost in the workforce,” said Jakob Brandt, CEO of SMVdanmark, an organization representing 18,000 small and medium-sized companies in Denmark. For example, the 16,000 applicants for Denmark’s early retirement scheme and the 25,000 new public sector jobs created since the start of the pandemic.

According to hospitality trade association HORESTA, Denmark’s hotel and restaurant industry alone is short-staffed by 12,000 people. Recent data from Statistics Denmark shows that four out of five hotels and two-thirds of restaurants experienced labour shortages in August.

“The problems are of such a magnitude that we can not solve it alone with the people who are already in this country,” Kirsten Munch, political director at HORESTA, said.

What role does international labour play?

Within the same week the initiative was announced, the leaders of Denmark’s liberal, conservative, and far left parties all expressed the importance of foreign labour in resolving the shortage. 

Sofie Carsten Nielsen, leader of the Social Liberal (Radikale Venstre) party, said foreign labour may be the fastest way to alleviate the urgent need for labour. “We know how it works, and it does not take long negotiations,” Nielsen said. “Giving companies better access to pick up skilled labour outside Denmark and outside Europe is low-hanging fruit.”

One suggestion to attract foreign labour is to reduce the salary requirements for skilled non-EU nationals to qualify for Denmark’s Pay Limit Scheme (beløbsordningen), a visa scheme only currently available to those with a minimum annual salary of 445,000 DKK. 

“[Reducing the Pay Limit Scheme minimum compensation] will make us more competitive in terms of attracting the foreign workforce that many other countries are also longing for at the moment,” said Brian Mikkelsen, CEO of Dansk Erhverv.

However, the now-governing Social Democrats have continued to oppose the reduction of the Pay Limit Scheme‘s minimum salary requirement.

Minister of Employment Peter Hummelgaard said the party is “generally pleased” with the current arrangements for recruiting qualified foreign labour, but are open to adjustments if they prove necessary in the future.

“It is the government’s first priority to ensure that the unemployed who are already in Denmark have the opportunity to get a job,” Hummelgaard told The Local. “If there are areas that are not possible to cover with Danish labour, we must of course turn our attention to the EU and next to third countries for qualified foreign labour.”

The Danish People’s Party (Dansk Folkeparti) has also expressed opposition to reducing the scheme’s minimum salary to prevent underpaid labor and social dumping.

“Dansk Folkeparti prioritises finding or creating jobs for the group of unemployed people in Denmark who are able to work before importing a workforce from other countries,” Bent Bøgsted, the party’s labour market spokesperson, told The Local.

The anti-immigration party believes Denmark’s unemployed workers could meet current needs, albeit with some upskilling.

“Unfortunately we see employers favouring cheap labor from non-EU countries and Eastern Europe instead. …This is unacceptable,” Bøgsted said.

Will attracting international labour be included in future initiatives?

After the “Denmark Can Do More” initiative was announced September 7th, several parties in the country’s parliament continued negotiations on additional reforms to reduce the current labour shortage, along with industry stakeholders. 

“We (DI) are part of those discussions and though we don’t know what will come of those discussions yet, it’s clear that the government and other parties of parliament recognise the need for international labour as one way to solve that,” Søren Kjærsgaard Høfler, a political consultant in global mobility at DI, told The Local. 

“Though DI appreciates the suggested reforms we see a need to act now, since the situation on the labour market calls for action right now,” Høfler added.

Any additional policy changes may be included in the financial act coming out later this autumn. 

 “Whether we bring workers into the labour market sooner, keep them longer, or bring in foreign labour with fewer hurdles, everyone wants to make sure there is enough labour for Danish companies to thrive,” Høfler said. “Some problems can be resolved through structural changes in Denmark’s own labour market, but we also know international labour is crucial. It’s not either/or; it’s both/and.”

Updated September 21st, 2021 to include comment from Danish People’s Party and on September 22nd, 2021 to include comment from Social Democrats.

Member comments

  1. Reducing labor rates is the fastest way to put downward pressure on all labor rates as companies will always select cheaper foreign workers over more expensive nationals. This scheme is why real wages in the USA have reminded stagnant for years, pre-COVID, as citizens struggle to compete for jobs taken by immigrants, many illegal. Currently the US is suffering a labor shortage as well but a lot of that is due to political decisions which do not require any work from those receiving public assistance. Data indicates that low skilled workers if their family is included receive more in public assistance than they produce for a net loss! If this scheme is ever implemented there will be no going back. The solution may be short term contract workers who must leave at the end of their contract and can not bring family members or if they do they are not eligible for any financial assistance . And if they do not depart at the end of their contract the employer is fined.

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For members


What are Denmark’s rules for taking extended leave due to child sickness?

It’s a situation we hope you never experience, but Denmark has rules in place for people who take periods of absence from work to look after children with long-term illness.

What are Denmark’s rules for taking extended leave due to child sickness?

If your child is seriously ill and you have to take time off work to care for him or her, you may be entitled to payments to cover lost wages.

Whether you qualify for the welfare support depends on whether the child needs to be hospitalised or cared for at home in a way that can be given equivalence with hospital treatment. More detail on this follows below.

If you are currently looking for work and receiving unemployment insurance (dagpenge in Danish) through membership of an A-kasse, the same rules can apply to you if you have to stop receiving this insurance to look after the child (for example, if you can no longer attend job centre meetings or regularly apply for jobs as required by the dagpenge system).

A short side point on terminology: The Danish term dagpenge is not just used in relation to the unemployment security that you get through A-kasse membership. It is also used in a number of different contexts related to the social welfare system. For example, barselsdagpenge means the money you receive (from the state) while on parental leave. Payments you can receive while looking after a sick child can also be called dagpenge even though they are not the same as A-kasse payouts.

READ ALSO: EXPLAINED: Should I sign up with a Danish union and get unemployment insurance?

People who are employed (rather than self-employed) can find out from their employer whether they have the right to take leave from work to take care of a child for an extended period.

If you are member of a trade union, the collective bargaining agreement (overenskomst in Danish) between your union and you employer will set out the rules that apply in your situation.

Non-union members can only take leave through agreements with their employer, rather than through rules defined in a collective bargaining agreement. As such, you do not have a legal right to take leave from work but can do so via an agreement with your workplace.

If you are currently looking for work and receiving payments through your A-kasse, you should contact the A-kasse.

If you do have the right to take leave to care for your child, a number of criteria will normally have to be fulfilled. Your child must be under 18 years old; the doctor treating them must confirm they expect their illness to last longer than 12 days (less for single parents) and require treatment at a hospital or other facility or equivalent treatment at home.

In order to receive compensation for time of work, you must be off work or work reduced hours as a result of the child’s illness and fulfil the general requirements which would qualify you for parental leave.

READ ALSO: Parental leave in Denmark: What are the new rules and when do they take effect?

Note that these rules for long-term child illness are not the same as the statutory ‘first day off’ which parents have the right to take (either paid or unpaid) if their child is taken ill acutely.

There are also separate rules for loss of income for parents who work less on a more permanent basis, to take care of a child with a disability or a chronic disease. We will write about this in a later article.

How do I apply for payments when off work for over 12 days to look after a sick child?

Before you submit documentation, your employer (or A-kasse) must register your absence via the website. If you are self-employed, you can also register absence on

It is important to submit documentation and applications as quickly as possible. You can only receive money from the day your absence is registered – in other words, it is not backdated.

Once your employer has registered your absence, you have eight weeks to submit the relevant information and documents. You will receive a notification via your secure digital mail E-boks, which provides you with a link to submit your application.

The doctors who are treating you child (not your GP) will be required to complete documentation detailing the child’s illness and expected treatment time, and where the treatment will take place. They will also describe the child’s care needs and what parents will need to do. It is your responsibility to make sure the documentation is submitted. You can also see the doctors’ form here and submit documents via this link, but remember that your employer must register your absence first.

How much will I be paid?

You can receive a maximum of 4,465 kroner per week (in 2022) pre-tax, and for a maximum of 52 weeks within an 18-month period.

If your trade union ensures a full salary during your absence, your employer can be refunded part of your wages while you are away. They must apply within eight weeks of your return to work.

If you have further questions or are unsure how the rules apply to your specific situation, you can call Udbetaling Danmark, the agency responsible for administration and payment of social welfare support. The relevant contact information can be found here.

READ ALSO: ‘Omsorgsdage’: What you need to know about Denmark’s childcare leave days