Denmark is Easing Immigration Rules to Fill Labor Shortages in Key Sectors

Never has there been a more opportune time for those who have longed to relocate to Europe. With labor shortages prevalent across the continent, non-EU workers have a greater chance of landing a job.

Denmark is the most recent country to modify its immigration policies to lure international talent.

By decreasing the minimum salary requirements, broadening the work permit expedited process, and expanding job opportunities for foreigners, the Scandinavian country is streamlining the process for companies to hire non-EU employees.

Additionally, foreign students studying in Denmark will be given an extended job search period upon completing their university degree.

The changes to the Danish Aliens Act, which were approved by parliament on 23 March, will take effect on 1 April.

Which positions require staffing due to Denmark’s labor shortage?

Denmark is grappling with a shortage of workers, a predicament shared by many countries throughout Europe. In the first quarter of 2022, 42% of businesses in Denmark encountered recruitment difficulties, according to the European Commission.

On January 1st, the country revised its ‘Positive List for People with a Higher Education’ and ‘Positive List for Skilled Workers’, both of which identify professions that are experiencing shortages of workers in Denmark.

Individuals who are offered a position from these lists are eligible to apply for a Danish residence and work permit. Denmark is especially in need of degree-holding professionals in the fields of science, engineering, healthcare, teaching, IT, and finance.

To obtain a permit for residence, you must demonstrate your educational qualifications, typically a bachelor’s or master’s degree.

The Skilled Workers list primarily focuses on associate professionals and clerks in areas such as science and engineering, business and administration, bookkeeping, and social care.

It also includes trades such as metalworking, machinery, building, and construction. Although the lists are revised twice a year, the new regulations will enable job roles to stay on the lists for two years instead of six months.

In what ways is Denmark simplifying the process for foreigners to find work in the country?

Denmark is not only broadening the range of job titles available to foreign applicants but also simplifying the hiring process for third-country nationals.

The minimum salary requirement will be reduced, resulting in more employment opportunities for foreign workers.

The new threshold will enable foreign workers earning at least DKK 375,000 (€50,344) to apply for work and residence permits. Currently, the limit is set at DKK 465,000 (€62,434).

Danish companies that intend to employ foreign nationals will be able to request fast-track certification, which grants them expedited work permit processing and greater flexibility for their employees.

Currently, businesses must have 20 full-time employees to qualify for this certification. However, with the new amendments, the minimum number will be lowered to 10 full-time employees, allowing more businesses to apply.

Denmark is also broadening its start-up program for third-country nationals. Presently, it is only open to entrepreneurs who wish to establish a new business in Denmark.

However, starting April 1st, it will be extended to individuals who already own a company in Denmark or elsewhere and those who want to establish a branch in Denmark.

Denmark is creating additional opportunities for international students to remain and work in the country.

Denmark is encouraging international students who are studying at its universities to remain in the country following the completion of their degree programs.

These students will be granted a three-year period to search for a job upon graduation. During this time, they can reside in the country and pursue employment without needing to obtain a separate residence permit.

This new regulation grants students an additional year compared to the present practice, which allows graduates to remain in Denmark for two years after completing their degree program.