Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.
Foreign workers are employed in knowledge-intensive jobs to a greater extent than before
Foreign labour plays an increasingly important role in the Danish economy. Around one in seven employed persons in Denmark were of foreign origin in 2024, half of whom had lived in Denmark for less than 10 years. The shift in the Danish economy towards more knowledge-intensive industries means among other things that foreign workers are increasingly employed in highly-paid positions – to a greater extent than in the EU overall. Model-based calculations indicate that foreign labour responds to cyclical developments in Denmark, which may reduce the risk of wage pressure amplifying economic fluctuations.
Key messages
Why is it important?
Foreign labour has played a major role in shaping employment developments in Denmark for many years. It is therefore key to understanding both the labour market and the Danish economy. This analysis shows how the inflow of foreign labour affects the ability of employers to recruit workers and thus influences wages and prices in the economy.
Main chart
Foreign labour has increased significantly, particularly in knowledge-intensive jobs
Note:
Employment is measured in persons. Foreign labour is defined as employees of foreign origin who have lived in Denmark for less than 10 years. Persons of foreign origin are immigrants born abroad whose parents are not Danish citizens and were not born in Denmark. Occupational classification is based on 1-digit DISCO codes from Statistics Denmark.
Source:
Own calculations based on register data from Statistics Denmark.