Key features of the Danish labour market:
Very flexible labour market
Competitive overall labour cost level
Highly motivated and productive workforce
Full flexibility in hiring and firing
The Danish “flexicurity” model offers a high flexibility in hiring and firing practices which is unique in Europe. The employer is entitled to dismiss employees at any time, without incurring costs, making it easier for an individual business to adjust the size of its workforce in Denmark.
Competitive labour costs
At first sight, Danish wages may seem high compared to other European countries. The competitiveness of Danish labour costs is, however, visible when one takes into consideration both wages and non-wages, as employers have low cost burdens in terms of social security, labour taxes etc. This makes the overall labour cost very competitive. Denmark offers a high level of social security for people who get ill or lose their job, but the employer’s contribution to social security is minimal.
Talent and business culture
Denmark has a highly educated population with excellent foreign language skills. The Danish workforce is perceived as highly motivated by foreign companies operating in Denmark. Danish employees are characterised as being healthily self-critical, with a will to learn and a commitment to improvement. A high level of education combined with independence and flexibility makes the Danish workforce capable of taking on tasks, which elsewhere would be reserved for management. It is also easy to find multi-lingual staff in Denmark; 80% of the Danish workforce speak English, 53% German, 11% French and 10% Swedish.
The rules for working in Denmark are in general among the most flexible and liberal in Europe. In contrast to many other European countries, no restrictions apply in Denmark regarding night and weekend work, which means that companies are allowed to operate 24 hours a day, 365 days a year.
Download our detailed factsheets Hiring Danish employees and The Danish Labour Market to learn more.