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WORKING IN DENMARK

Could Denmark’s election result affect work permit and citizenship rules?

Business organisations in Denmark have urged work permit rules to be eased to help address a labour shortage, while the country’s citizenship rules are amongst Europe’s tightest. Does the upcoming election bring any potential for change?

Could Denmark’s election result affect work permit and citizenship rules?
Two executives at Woods Office Augusthus in Copenhagen. Illustration photo: Thomas Lekfeldt/Ritzau Scanpix

This summer saw Denmark approve, after protracted negotiations, a reform to its Pay Limit Scheme, a criteria system used to grant work permits to non-EU nationals.

The agreement means that Danish companies can now hire skilled foreign staff on contracts paying an annual salary of 375,000 kroner, and that the foreign employees can be granted work and residence permits on that basis. The new pay limit is a 16 percent decrease from the previous 448,000 kroner.

The Pay Limit Scheme is one of a number of business schemes used to grant work permits for non-EU and EEA nationals who are unable to move to Denmark under the EU’s right to free movement.

READ ALSO: How can you get a work permit in Denmark if you are not an EU national? 

While business organisations welcomed the deal at the time (and trade unions criticised it for potentially impacting Danish wages), they later said it did not go far enough to alleviate the country’s labour shortage.

“In the wider perspective, too little has been done for years. During the last two government administrations no honest reform was implemented which would have increased the labour supply. That won’t do [if it continues] in a third successive government,” political director Emil Fannikke Kiær of the Confederation of Danish Industry (Dansk Industri, DI) said last month.

Some parties – particularly pro-business ones on the right wing – have expressed a will to find solutions to the labour shortage by increasing access to skilled foreign labour.

But the issue must be disconnected from immigration before voters accept a change to work permit rules, according to Professor in Political Science Kasper Møller Hansen of the University of Copenhagen.

“This is related to the consensus of a strict immigration policy,” Hansen told The Local at an election briefing.

The governing Social Democrats have pursued strict immigration rules, a policy that is also firmly established amongst opposition conservative parties.

“Even though Liberal Alliance, and sometimes the Conservatives talk about us needing labour, I don’t think they would touch [work permits] because of the connection with the immigration discussion,” he said.

“Immigration, historically, has played this huge role in politics. Somehow, they have to lift this discussion out of politics and make it more of a ‘green card’ discussion,” he said.

“I think you need to lift it out and say ‘this is not really a discussion about immigrants and refugees, it’s about labour shortages and having qualified labour’.

“All the companies are screaming for employment at the moment. I think you have to manage to disconnect it and that doesn’t seem to happen at the moment, and it’s definitely not happening in the (election) campaign,” he said.

Another area in which foreign residents in Denmark might hope an election will bring a fresh political approach is citizenship.

However, the likelihood of changes to Denmark’s citizenship rules – which are among the strictest in Europe – is marginal for similar reasons, Hansen said.

The proportion of Denmark’s adult population which cannot vote in parliamentary elections has grown from 2 percent in the 1980s to 10 percent now. Experts have cited strict citizenship rules as the primary reason for this because foreign nationals who live in Denmark long-term are increasingly unable to meet citizenship criteria.

READ ALSO:

Left wing party Independent Greens said in November last year that it wants to allow persons who have legally resided in Denmark for at least four years to be allowed to vote in elections.

A similar stance was pronounced by the Alternative party in 2018.

Both of these parties are at the fringes of parliamentary influence, however.

poll this week gave the Independent Greens a 0.6 percent share of the vote, which would not see it over the threshold of 2 percent needed to be allocated parliamentary representation. Alternative is at 2.0 percent, its strongest poll showing since early 2020.

“At the moment Denmark is probably the strictest place to get citizenship in the world, more or less, and it doesn’t seem to be changing” Hansen said.

“Some parties [on the left wing, ed.] might want to open up [for reform] but the (governing) Social Democrats definitely would not,” he said.

If the government eased its position on citizenship, it would be attacked by opposition parties, he said.

READ ALSO: Who are Denmark’s 13 political parties and what election pledges have they made?

Member comments

  1. “The proportion of Denmark’s adult population which cannot vote in parliamentary elections has shrunk from 2 percent in the 1980s to 10 percent now.”

    Does the person who wrote that speak English? A change from 2 percent to 10 percent is NOT shrinkage. It is a 5-times increase! That means that it’s the percentage of those who CAN vote that has shrunk.

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WORKING IN DENMARK

Foreign workers report increased appeal of Denmark and Copenhagen in study

A new study has placed Denmark first in the Nordic region and 17th in the world in terms of popularity among foreign workers.

Foreign workers report increased appeal of Denmark and Copenhagen in study

A global study by Boston Consulting Group and The Network, in which Danish jobsearch site Jobindex participates, found that Denmark is punching above its weight globally when it comes to presenting itself as an attractive option for foreign staff.

A high ranking in the study is good news given Denmark’s high employment rate and difficulty reported by businesses filling long and short-term positions, the Boston Consulting Group said in a press release.

The study, Decoding Global Talent 2024, was released on Wednesday. The study has been conducted on repeated occasions since 2014, gauging the preferences of international workers.

It is the largest study of its kind in the world and with over 150,000 respondents from 185 countries including 11,000 from Denmark.

“It’s very impressive that Denmark takes a top position on the list. We are far from being the 17th-largest country in the world. The highest places naturally go to the English-speaking countries where most people have the language,” Boston Consulting Group’s Managing Director and Senior Partner Andreas Malby said in the statement.

“But foreign labour wants to go to Denmark because of quality of life and security in this country,” Malby added.

Individual countries’ performance in the study is based on the subjective perceptions of workers around the world, who submit votes. In addition to quality of life and security, other factors such as economic growth, tax, healthcare and work permit and visa processes can all influence the perceptions of survey respondents of how countries brand themselves.

Denmark’s ranking this year is an eight-place improvement since the last time the study was conducted in 2021. The 17th spot achieved this year puts it ahead of Nordic neighbours Sweden, Norway and Finland in the ranking.

Copenhagen also popular

Capital city Copenhagen rates well on the city version of the list, its 28th place also ahead of Nordic rivals.

“It reflects Denmark’s good image that manages to attract international labour,” the CEO of Jobindex, Kaare Danielsen, said in the statement.

Danielsen described the study as “big and good news for Danish employers who face a shortage of staff in the short and long terms”.

“We are looking at an international shortage of labour in areas like green transition and AI where it is hugely important for us to attract international labour,” he said.

Danielsen noted that the results of the study point to a potential for Denmark to recruit more labour from southern Europe, where it has a high level of appeal for skilled workers.

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