New figures: 6 out of 10 Danish companies struggle to find employees
60% of Danish companies in need of new employees have difficulty finding them, shows a new survey from DI. At software company Milestone Systems, the problem is so severe that they’re often forced to abandon attempts to fill the position in Denmark.
One hundred vacancies in Denmark. That’s the number of positions waiting to be filled at video management software provider Milestone Systems, which is one of the companies affected by Denmark’s labour shortage.
“We’re trying to find employees in Denmark on all conceivable platforms. But in Denmark we have the fundamental problem of excess demand and undersupply of labour,” says Lars Thinggaard, CEO of Milestone Systems.
The company is far from alone.
The economy is growing, and we’ve had some very good years. This is something we want to continue, and that requires that companies are able to get the labour they need. Steen Nielsen, Director
The economy is growing, and we’ve had some very good years. This is something we want to continue, and that requires that companies are able to get the labour they need. Otherwise we risk seeing Denmark’s growth and business climate suffer. Steen Nielsen, Director
In a new survey among 465 companies from DI’s business panel, 60% of companies with a need to recruit responded that they have had difficulty finding labour in the past year.
“It is often the case that our members are forced to refrain from bidding or are unable to deliver an order because they do not have enough employees,” says Steen Nielsen, Director, DI.
See also: Guide for hiring foreign employees
Shortage of foreign labour
For many companies, the solution is to bring in employees from abroad, but at Milestone Systems, CEO Lars Thinggaard has often found that it is impossible to bring candidates with the right competences to Denmark.
“Often we end up having to abandon our attempt to fill the position in Denmark and instead hire an employee in one of our international subsidiaries,” says Lars Thinggaard.
One of the barriers is the Pay Limit Scheme, which sets the minimum annual salary for foreign labour from non-EU countries at DKK 417,000 per year. This affects recently graduated foreign talents in particular.
“What we’re lacking in Denmark is skilled workers, and in order for us to be able to hire them, the Pay Limit Scheme must be lowered,” says Steen Nielsen. DI wants to lower the minimum salary to DKK 325,000.
See also: DKK 5 million grant to attract talents across the Atlantic
Drastic increase in Danish employment
The high demand for labour follows a drastic increase in Danish employment over a short period of time.
After private sector employment hit a low of 1.7 million in 2011, it has since increased to 1.92 million in May 2018 and is still rising.
“The economy is growing, and we’ve had some very good years. This is something we want to continue, and that requires that companies are able to get the labour they need. Otherwise we risk seeing Denmark’s growth and business climate suffer,” says Steen Nielsen.
It is particularly companies with over 100 employees that view the issue as serious.