The Danish labour market has shown resilience, with rising employment rates over the past decade. This report by the OECD analyses the factors contributing to this resilience and offers strategies to address challenges posed by demographic changes, digitalisation, and the green transition. These challenges include adapting to an ageing population, integrating foreign-born workers, and ensuring that the workforce is equipped with relevant skills for emerging industries.
To tackle these challenges, the report outlines strategies to address labour and skills shortages in Denmark’s evolving economy, such as reducing the effective tax rate on labour income to encourage full-time work and adapting workplaces for an ageing workforce. The OECD also suggests aligning education with labour market needs through targeted programmes to address skills shortages and improve the integration of foreign-born workers.
To meet future demands, the OECD stresses the importance of reskilling as digital and green transitions shift job requirements. Due to its advanced digitalisation, Denmark is well positioned for these changes. The report highlights the impact that the flexicurity model, low hiring and firing costs and decentralised wage negotiations, has had. This model offers protection and reskilling options to integrate displaced workers, ensuring a balanced evolution of the labour market in response to these transitions.
Source: European Digital Skills & Jobs Platform
