Two out of every three Danish municipalities will face a decline in their labour force over the next decade to the extent that there is a definite risk some will simply run out of employees if no action is taken, warns former minister Brian Mikkelsen, the CEO of Dansk Erhverv.

Currently, several municipalities are reporting a shortage of labour. Some are unable to stay open the whole day, while others are turning down orders because they cannot get the sufficient workforce. As a consequence, in the long run, Denmark is missing out on growth, prosperity and jobs.

“Alarming ” decline in people of working age
These developments are alarming, according to Mikkelsen, who warns situation is expected to get worse over the next eight years.

“It is deeply worrying that municipalities such as Norddjurs, Hjørring, Skive, Tønder, Lolland, Læsø and Lemvig are all facing a decline in the number of people of working age of eight percent or more,” he noted.

In Læsø and Lemvig, for instance, a labour shortage of up to 12 percent is expected until 2030. 

Finding short and long-term solutions is urgent
Mikkelsen urges the necessity of action.

In the long run, he suggests that the number of employees currently working in other areas of the public sector (e.g corona management) needs to be shortened, so municipalities can benefit from the then available workforce.

In the short term, it is also crucial to focus on the recruitment of labour from foreign countries. Mikkelsen sees it as a political duty to act and implement reforms as soon as possible.