The Danish labour market is characterized by a well educated work force and flexible conditions.
The level of education is high in Denmark. 42% of the population has a higher education and 77% has finished high school – one of the highest numbers in the EU in general. Most Danes speak English and many also master the German language.
Danish employees are good at cooperating and they are used to being self conductive and taking initiative. They have demands for the work place, but are also very motivated and flexible.
Flexicurity – the Danish model with both flexibility and security
In Denmark it is dependant on the employers and employees to agree on the conditions of the labour market. Neither the government nor the parliament is involved. In many other countries the labour market is regulated by law, so this is unique in Denmark.
Furthermore, the state is the guarantor of a safety system, that provides a basis of existence (unemployment benefits or income maintenance) for employees in the case of unemployment. This entails both flexibility and security, because:
- There is a short term of resignation – often just one month. This means employers can easily hire and fire emplyees depending on need of labour. This possibility to adjust the size of the staff make employers more willing to take risks.
- Employees are guaranteed a basis of existence which make them more inclined to accept conditions of short term resignation. In addition, mobility in the labour market is enhanced, since employees can quickly change jobs if the wish to do so.
Sensible salary level
The Danish labour market is known for a high salary level compared to other EU countries. However, it is important to factor in, that the Danish work force is characterized by a high level of education and great efficiency. Also, the Danish labour market is marked by a high degree of flexibility due to the Danish flexicurity model. Hence, it is quick and cost free for employers to adjust the staff according to production needs.
In addition, it is worth noting that employers in other countries are required to pay taxes for social contributions, besides the salary. This is not a requirement in Denmark.
If you wish to know more about the Danish labour market and the possibilities of establishing a business in Vordingborg Municipality, you are very welcome to contact Business Vordingborg.