Skip to content

Understanding the flexible Danish labour market

Denmark has a flexible labour market, featuring competitive salary levels compared to the rest of Europe. The Danish workforce is highly educated and among the most productive in Europe.
In Denmark, you will experience a labour market that makes it easy to locate and develop highly skilled talent, as well as scaling the business according to varying needs and changing strategic priorities.

In fact, Denmark’s so-called flexicurity model gives your company Europe’s best up and down-scaling conditions so you can adapt to market changes quickly and efficiently.

Key features of the Danish labour market:

  • Very flexible labour market in terms of hiring and firing.
  • Competitive overall labour cost level.
  • Highly motivated and productive workforce.
  • High English proficiency.

What is flexicurity?

Flexicurity (a portmanteau of flexibility and security) is an integrated strategy for enhancing, at the same time, flexibility and security in the labour market. It attempts to reconcile employers' need for a flexible workforce with workers' need for security and promotes adaptability of employees and enterprises.

Full flexibility in hiring and firing

The flexicurity model offers a high flexibility in hiring and firing practices, which is unique in Europe. Provided a valid reason exists and legal notice is given, the employer is entitled to dismiss any employee 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 considering both wages and non-wages, as employers have low cost burdens in terms of social security, labour taxes and more.

This makes the overall labour cost very competitive without compromising employees’ rights and benefits. As such, 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.

Great language proficiency

Denmark has a highly educated population with excellent foreign language skills. In fact, we are rated 3rd on the EF English Proficiency Index 2017 and it is easy to find multi-lingual staff in Denmark.

Highly educated, productive and egalitarian

The Danish workforce is perceived as highly motivated by foreign companies operating in Denmark. Denmark is characterised by a flat hierarchical structure and a team-oriented approach. This breeds ideas and innovative solutions, integrating user-centered design and innovation processes.

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. 

Download Curious to learn more about doing business in Denmark?

Invest in Denmark provides range of relevant resources for your reference when searching for investment opportunities in Denmark. Our selection includes fact sheets, brochures and reports on key industries and business opportunities in Denmark.

Contact How can we help you? 

If you want to know more about the Danish labour marked, please do not hesitate to contact our dedicated advisors: