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Exit of foreign workers will cost the public purse DKK 19.5 billion

Without foreign labour, a very large part of the financial leeway accessible to the Danish government and the rest of the parties in parliament until 2025 will disappear. This is the conclusion of a new analysis from the Confederation of Danish Industry.
Global talent is in high demand. Pictured above is a career fair at Massachusetts Institute of Technology (MIT), which the Confederation of Danish Industry attended earlier this year to highlight the advantages of working in Denmark.

Publiceret: 17.05.2018
Af Peter G. H. Madsen mail

It will be a major blow to Denmark’s public finances if the international employees currently working in Denmark say goodbye.

In total, the public purse will lose out on DKK 19.5 billion towards 2025. This is equal to two thirds of the financial leeway the government has just recently calculated at DKK 29.5 billion. These are funds that politicians currently count on having available to improve welfare or lower taxes.

The noteworthy numbers emerge from a new analysis conducted by the Confederation of Danish Industry, which examines what would happen to public finances if immigrants with employment as their grounds for residence and the incoming foreign workforce were no longer here to lend a hand at Danish businesses.

According to CEO of the Confederation of Danish Industry Karsten Dybvad, the figures highlight the crucial role that workers from abroad play in Denmark, helping to ensure that the country is able to sustain the high degree of welfare that characterises it.

“Danish businesses could not function without talented foreign employees who work at both small and large companies across the country. The fact is, Danish society would face major problems if the international workforce disappeared,” he says.

Read the entire analysis (in Danish).

Foreign labour has enormous value

According to Karsten Dybvad, it is important that the debate regarding foreign labour is not entangled with the general debate about integration issues in Denmark.

“We fully acknowledge that there are major unsolved issues with integration of refugees and immigrants in Denmark – and that is naturally something we must tackle. But it is important to separate the two. It is a whole different matter with talented foreign employees who come here, work and contribute from day one,” says Karsten Dybvad.

According to DI’s CEO, this is particularly important to remember at a time where qualified workers are in high demand in all of Europe.
Recently, ambassadors from Bulgaria, Hungary and Romania have urged their compatriots to say goodbye to Denmark and return home. Also the ambassador of Poland has encouraged Polish employees in Denmark to seek work at home.

“The competition to attract talented foreign workers is getting tougher and tougher, and we cannot take for granted that we will be able to continue bringing in employees from abroad. We must take measures to retain the ones we have and to attract more,” says Karsten Dybvad.

According to calculations from the Ministry of Finance, immigrants from any country and with any grounds for residence will on average have a positive impact on public finances and growth in Denmark if they are employed and have an annual income over DKK 200,000. 

See also: Difficilty of finding friends cost Denmark attractive foreign workers

Danish businesses could not function without talented foreign employees.
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PUBLISHED: 5/17/2018 LAST MODIFIED: 5/17/2018