According to a report from the independent economic advisory body De Økonomiske Råd, foreigners will form an important cog in the future of Denmark’s labour force.
The report (here in Danish) shows that attracting 70,000 foreign workers will be a critical endeavour for future growth looking ahead to 2025.
Attracting the foreigners will be key to attaining expected growth of 2.1 percent from 2019 to 2025, though it may be difficult to get them to come to Denmark. Thanks to an upswing in other EU nations, it will be less attractive for Germans, Poles and others to come to Denmark. It’s also important to attract the right workers.
“People who come to Denmark as refugees or on family reunification have a significantly lower employment frequency than people who come here on profession-related schemes,” the report found.
“If it transpires that refugees make up a larger part of the net immigration than has historically been the case, it can reduce the immigrants’ profession frequency and thus the rise in labour force.”
Boon or bust?
Because of this, the net immigration of 70,000 foreigners by 2025 contributes considerable insecurity when it comes to projecting the labour force.
In total, De Økonomiske Råd expects the structural labour force in Denmark to increase by almost 115,000 by 2025, thanks to rises in the early retirement and pension ages.
Last year, a report from the think-tank DEA revealed that highly-skilled workers who come to Denmark from abroad are a significant financial boon to the country’s state coffers.