Foreign companies believe Danish labour is too expensive

Although their investments in Denmark have increased, international companies are cutting down on their local workforces

According to the American Chamber of Commerce in Denmark (AmCham Denmark), foreign companies believe the local workforce is too costly, reports Jyllands-Posten.

While their investments in Denmark have increased in 2014, international companies are reluctant to hire locally, states the latest edition of AmCham's Business Barometer.

Financial crisis not over in DK
The annual report shows that although 31 percent of the surveyed companies have hired more employees this year, 28 percent of them reduced their staff numbers. 

According to AmCham, the situation has been like this since 2010. "The data suggests that the financial crisis is far from over," says the report.

Tax reductions are not enough
In spite of the fact that corporate tax was reduced from 25 to 22 percent last year, it did not solve the problem, claims AmCham.

Forty-six percent of the surveyed businesses are considering moving their investments, including jobs, out of Denmark.