The border-control freaks relent
With a risk of an overheating labor market, Denmark eases work-permit rules for foreign professionals
While the United States has opened the floodgates for tens of thousands of migrants at its Mexican border after the expiration of Title 42 restrictions, Denmark recently made some incremental adjustments to the rules on work and residence permits in order to boost its qualified labor force. The country has been criticized for its stringent immigration policies, but like the rest of Europe, it has seen the average number of children per woman fall below the replacement rate of 2.1, to 1.71 in 2022.
This is a public service announcement for Americans whose jobs have been stolen by those millions of illegal immigrants and for any others fearing a pink slip from a chatbot. Enlist a chatbot yourself to polish your c.v. and send your applications to a place with an unemployment rate of 2.3 percent.
No fooling around
The new rules took effect on 1 April. The change most eagerly awaited by business associations was an expansion of the so-called Pay Limit Scheme (Beløbsordning, actually a pay threshold scheme). It lowers the minimum annual wage required for non-EU nationals to get a work permit from DKK 448,00 (USD 65,000) to DKK 375,000 (USD 55,000). If a job normally pays Danish workers more than the minimum, employers are required to pay foreign workers the same amount. See additional details.
The Positive List of occupations for which employers can grant work and residence permits for foreign applicants was also expanded. These are positions requiring educational qualifications where there is currently a shortage. The list is revised twice a year. The rule changes will benefit smaller Danish companies that offer lower salaries.
When can you start?
The foreign employment measure also opens the Fast-Track Scheme to additional employers. For jobs requiring special qualifications, foreign hires can obtain a temporary work permit that enables them to start work immediately after arriving in Denmark or, if they need a visa, to get one within ten days. The minimum number of employees required for companies to be eligible was reduced from 20 to ten.
Graduates and tech bros welcome
In another change, the Danish Agency for International Recruitment and Integration (SIRI) announced that foreign graduates of Danish higher educational institutions can obtain work and residence permits for a longer period while they seek a job in Denmark—three years instead of two. There are certain restrictions: you must maintain an address in Denmark and may not be out of the country for more than six consecutive months. Job seekers without bachelor’s degrees or higher can apply for a six-month work permit.
Another program, Start-up Denmark, offers three-year work permits to foreign entrepreneurs who want to found a business in Denmark. It is available for projects involving up to three people. There are some restrictions on the type of company, whose operation must be deemed beneficial for Danish commerce. Applications must be approved by the Danish Business Authority.
Tapping the world’s most populous country
The government is also in negotiations to update its Labour Mobility agreement with India. The purpose of the arrangement is to “accelerate green energy conversion.” Some 15,000 Indian nationals now reside in Denmark, with 5,000 new work and residence permits granted in 2022.
Application fees were increased slightly this year to DKK 4,670 (USD 677) for work permits and DKK 2,115 (USD 306) for study permits.
Staving off the demographic time bomb
A record number of people moved to Denmark to work in 2022: 31,600, a 24 percent increase over the number the year before. The largest group came from eastern EU countries, led by Romania. Foreign labor has “ensured high stable growth in the economy,” said Tore Stramer of the Danish Chamber of Commerce.
The trend accelerated in the first quarter of 2023 (also before the more lenient rules took effect), with a net increase of 11,000 new residents, pushing the total population toward 6 million. Denmark now ranks as country No. 130 in the world by headcount, widening its lead over Slovakia and Bahrain and closing in on the size of Metropolitan Atlanta.