The Danish labour market is known for its high level of flexibility when hiring, a social welfare system and active employment policies. Together, these three components constitute what is known as the ‘Flexicurity Model’, which combines market economy with the traditional Scandinavian welfare state.
Flexicurity provides a dynamic labour market and high job mobility. A major reason for the high degree of mobility is that there are practically no barriers when changing jobs. Moving to a new job has no effect on pension entitlements or earned holiday time, for example.
Minimal labour market legislation
In Denmark, labour market conditions are primarily regulated by collective agreements between social partners. This means that there is no legislations regarding minimum wages. There are minimum requirements set by law in some areas. Examples of these include:the Danish Holidays Act, the Danish Employment Contract Act, the Danish Act on Equal Treatment, the Danish Act on Allowance for Illness or Parental Leave, etc.
Some sectors face skills shortages
Highly qualified specialists are always in demand in Denmark, especially in following sectors.
- IT
- life science
- medical and health services
- engineering
Workindenmark specialises in attracting and recruiting candidates in these sectors to Denmark.
Skills shortages can be observed in some other sectors depending on economic cycles.