Business Round-Up: Economic Experts Call for Foreign Recruitment to Alleviate Labor Shortage


The severe labor shortage in Denmark has been linked to Dansk Industry as the “biggest recruitment crisis in Danish history”.

Last month the government introduced the “Denmark Can Do More” reform. Last week, the government struck a deal with national recruiting associations to step up efforts to match the unemployed with available jobs and to recruit European workers.

But according to De Økonomiske Råd (the Economic Council), this is not enough. In its latest report – one of two released each year by the independent economic advisory body, the council called on the government to further open up the market to foreign labor.

Strict entry conditions
Non-EU workers must earn at least KKr 445,000 per year to be eligible for a Danish work visa. The requirement prevents many workers – who could otherwise alleviate the labor shortage – from entering the country, the council says.

“The minimum entry wage should be lowered. This will encourage more workers to join the labor market and our previous analyzes show that the knock-on effect on Danish wages and employment is minimal, ”said Economic Council President Carl-Johan Dalgaard.

Denmark’s largest business organization, Dansk Industri, was among the first to openly insist on increasing foreign labor.

“The Economic Council has hit the nail on the head with its proposal to lower the salary limit for foreign workers so that companies can access additional employees,” said DI policy chief Emil Fannikke Kiær.

Figures equivalent to those before the financial crisis
The Economic Council predicts an increase of 60,000 unemployed this year, bringing the “unemployment gap” – a figure that expresses how much unemployment is above normal levels – to 0.75% this year.

The unemployment gap is expected to reach 1.75% in 2022. “This roughly equates to the pressure on the labor market in 2006, just before the boom actually peaks,” according to the Council report. economic.

However severe the warnings of the Economic Council may be, the IDs are even more so. He says the council underestimates the rise of the economy – and therefore also the magnitude of the job problem. DI predicts GDP growth of 4.4% this year, and the board of 3.9%.

Danish banks lend billions to Israeli companies in occupied Palestine
Danske Bank is one of the main European creditors of companies operating in illegal Israeli settlements, according to a new report by a coalition of 26 Palestinian and European civil organizations. The bank has loaned nearly 16 billion kronor to companies with links to the settlements since 2018. Nykredit and BankInvest also have financial ties to Israel’s occupation of the Palestinian territories. European cash flows make the colonies economically profitable and give them political legitimacy, albeit illegal under international law. Asked by Danwatch about the unethical nature of investing, Danske Bank press secretary Claes Lautrup Cunliffe declined to comment.

Nearly 10,000 people have reported the effects of COVID-19 as work-related injuries
New figures from Arbejdsmarkedets Erhvervssikring reveal that nearly 10,000 workers who contracted COVID-19 reported it as an occupational injury. Most work in the health sector or as caregivers, and are therefore part of the vulnerable group of frontline workers. The release of the figures coincides with a major political battle over how employers treat healthcare professionals who have been unable to return to full-time work due to the lasting effects of their COVID-19 infection.

Danish agricultural robot company FarmDroid sees demand rise
A Danish company called FarmDroid, which has sold more agricultural robots than any other company in the world, recorded growth figures of 1,000 percent between 2019 and 2020. The founders, brothers Kristian and Jens Warming, sold 150 weeding and weeding robots, which run on solar energy and are autonomous. FarmDroid recently moved some of its testing activities from Ravnholtgård to Vejen. It plans to increase its production capacity from ten robots per week to 25.

Microchip shortage affects car and iPhone production
In a survey of 121 car dealers by Autobranchen Danmark, over 50% of dealers reported receiving 40% fewer cars than usual, with delivery times extended from 4 to 6 months on many models. A lack of microchips and other subcomponents has impacted production time at auto factories, and made worse by the fact that many have been shut down periodically during the pandemic, so they have a backlog of orders. According to Bloomberg News, Apple was forced to cut iPhone 13 production by 11% this year due to a lack of microchips.

The Bianco shoe chain closes its last stores
The shoe chain Bianco has, after a long series of deficits, announced the closure of its 23 remaining stores in Denmark and Norway. CEO Thomas Rosenvold Tygesen said the precise closing date is not confirmed as there are several commercial leases to be terminated. Bianco shoes will still be available for purchase from wholesalers, and the possibility of concession points of sale in department stores is still relevant. Danish Bianco stores can be found in Aarhus, Horsens, Vejle, Kolding, Randers, Køge and Rødovre.

Danish stock exchange has best day in seven months
The OMX Copenhagen 25 Index – a leading list of Denmark’s 25 top-rated public companies – rose 2.5% on October 13 to 1888.7. This is the biggest daily increase since March 9. The rise follows a period of decline in value over fears that Chinese real estate giant Evergrande might go bankrupt. Wednesday’s increase may have been due to the number of “quality stocks” on the Danish stock market that have held up during the pandemic and have since shown a strong profit trend. This applies to Maersk, Novo Nordisk, Vestas and Ørsted, among others.

Danish invention adopted for Indian mass production
Danish wind turbine pioneer Henrik Stiesdal has developed a hydrogen electrolysis machine called the “HydroGen Electrolyzer”. Electrolysis can be used, among other things, to replace fossil fuels in trucks, ocean-going ships and a number of industrial processes. Stiesdal’s new device will be mass-produced at a new factory run by India’s largest industrial company Reliance Industries. Stiesdal signed a deal with the Indian conglomerate as part of Prime Minister Mette Frederiksen’s state visit to India this month. “We aim to reach our goal of delivering hydrogen for less than $ 1 a kilo within a decade,” said Mukesh Ambani, CEO of Reliance Industries, who is said to be the richest man in Asia.

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