Denmark’s workforce is shrinking. As the population ages in the coming years, we will have fewer people to solve the many challenges we face: Climate crisis, maintaining good welfare and much more.
The problem is not only Danish, but European. In ten years, the UN expects that there will be 17 million fewer people aged 20-64 in the EU and the Nordic countries.
Danish companies have struggled with a shortage of skilled workers for years. And with a shrinking workforce, it seems relevant to look for expats from countries outside Europe. Not just to maintain the potential for economic growth, but also to maintain our welfare system.
Dansk Erhverv has called for action. First of all, more people must go from unemployment to having a job. We must ensure that the many young people who are currently unemployed or outside the education system get back on track.
We must also become better at keeping seniors on the labor market for longer. And we need labor market reforms.
More welcoming approach
But this alone won’t cut it. We must also attract more international talent. This requires fewer rules and regulations to make it easier for companies to hire expatriate workers. And it calls for Danish society to have a more open and welcoming approach to the many skilled expats who come to Denmark to work.
Many European countries are on the way. In Germany, the government is working on partnerships with other non-EU countries to help balance a shrinking workforce. Likewise, the Italian government has approved a program that will include around 450,000 work permits for people from countries outside the EU.
In Dansk Erhverv, we have proposed that Denmark enters into partnerships with other countries in order to attract the much-needed international talent. We need to act before it’s too late.
Danish wages are high
This has created debate, which is more than welcome. Unfortunately, most of the debate is criticism of our proposal without presenting any realistic alternatives.
A good example of this is Niels Jespersen’s words here in CPHpost. He suggests that Danish companies should simply raise wages. However, Danish wages are already high compared to other countries. If wages are raised, Danish products become more expensive and we export less.
If companies need foreign labor, why don’t they pay more?
The result? Denmark will become a poorer country with less money for the welfare system.
And speaking of welfare: What about the lack of labor among the groups that work in the welfare system? Sorry, but higher wages are not a sustainable solution if we want to preserve both our wealth and welfare in the future.
The post Dansk Erhverv: Denmark and Europe need expats appeared first on The Copenhagen Post.
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