• 6.5

    2019

0.1

Up

Key drivers

Education Flexibility (5.2)

The share of graduates as a percentage of the population has risen in Denmark, boosting the skilled labour supply.

Labour Market Participation (4.5)

While still positive, the growth in the total participation rate is forecast to be much lower this year than it was last year. This will limit the rate of expansion of the skilled labour force.

Talent Mismatch (9.5)

Both the rate of unfilled vacancies and long-term unemployment rate have risen slightly in Denmark. This suggests that employers are finding it more difficult to fill roles with workers with the right skills.

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Education Flexibility

5.2
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Labour Market Participation

4.5
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Labour Market Flexibility

3.5
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Talent Mismatch

9.5
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Overall Wage Pressure

8.9
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Wage Pressure in High-Skill Industries

8.7
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Wage Pressure in High-Skill Occupation

4.9
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Marc Lutz

Nordic Director, Hays Nordics

View from the Ground

The Danish market continues to be characterised by its low rate of unemployment and an economy which continues to improve. Therefore, we are seeing an increasing mismatch between the skills available in the market, and those skills in high demand by organisations. This is leading to companies filling vacancies with workers from more widely varying backgrounds and not necessarily with the desired experience and skills. This growing demand for highly skilled profiles is also being felt by organisations, as the demand further underlines the increasing wage pressure due to businesses paying a premium for the skills they require. The continued development of technology has made it easier for Danish companies to attract people from outside of the country, which is essential when the right skills can’t be found locally.

Marc Lutz, Nordic Director, Hays Nordics

Key Skills in Demand

  • Software Developers
  • Marketing Specialists – Digital/ Communications
  • Mechanical Engineers
  • Regulatory Affairs Managers/ Quality Assurance Managers
  • Medical Advisors

Market Insight

In 2018, the Danish economy grew by 1.6%. This growth reflected a 2.6% rise in domestic demand, partly offset by a negative net trade contribution. This benign economic performance is expected to continue over the medium term, driven by private consumption and business investment spending.

Employment rose by 1.8% in 2018. This increase reflected an expansion in employment in business services, transport and logistics, and the public sector. There is some evidence that skills shortages are rising and are being increasingly reported as a limitation to production, particularly in services and cyclical sectors such as construction. Reported job vacancies have continued to rise. The unemployment rate has declined to its lowest post-financial crisis level at 5.0% in 2018. Of which, just under a fifth are long-term unemployed.