Labour shortage in Denmark 'cost businesses billions' this summer
Danish businesses missed out on 31 billion kroner in potential revenues in June and July because of a shortage of labour, according to a study conducted by the Danish Chamber of Commerce.
The figure comes from survey of 734 member organisations conducted by the Chamber of Commerce. The companies in question are based in sectors including trade, service and IT.
“I think this is very alarming. This money could have been spent on innovation, development and hiring new employees,” the organisation’s CEO Brian Mikkelsen said.
Mikkelsen called for more foreign labour, along with fewer schemes enabling early retirement and reduced income tax as measures to address the national labour shortage.
READ ALSO: Danish businesses and trade union praise party over international hiring plan
In the survey, 34 percent of businesses answered that a shortage of labour had limited their ability to maximise turnover and growth.
In contrast, 6 percent said that a lack of materials slowed down their turnover.
It is the shortage of labour which is most to blame for suboptimal turnover at Danish companies, Mikkelsen argued.
“They are having to say no to orders. Then they maybe lose [customers]. They then find another place in another country where they can find the products,” he said.
An earlier member survey conducted by the Danish Chamber of Commerce found that businesses had lost 35 billion kroner in turnover during August and September 2021, also due to a labour shortage.
Although the newer survey revealed a smaller amount of lost revenue, the problem is just as big according to Mikkelsen.
“Things were going very, very badly back then. With this survey, it’s going very badly. Losing 31 billion kroner is a loss to our social welfare society. You’ll have less money for things like hospitals,” he said.
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The figure comes from survey of 734 member organisations conducted by the Chamber of Commerce. The companies in question are based in sectors including trade, service and IT.
“I think this is very alarming. This money could have been spent on innovation, development and hiring new employees,” the organisation’s CEO Brian Mikkelsen said.
Mikkelsen called for more foreign labour, along with fewer schemes enabling early retirement and reduced income tax as measures to address the national labour shortage.
READ ALSO: Danish businesses and trade union praise party over international hiring plan
In the survey, 34 percent of businesses answered that a shortage of labour had limited their ability to maximise turnover and growth.
In contrast, 6 percent said that a lack of materials slowed down their turnover.
It is the shortage of labour which is most to blame for suboptimal turnover at Danish companies, Mikkelsen argued.
“They are having to say no to orders. Then they maybe lose [customers]. They then find another place in another country where they can find the products,” he said.
An earlier member survey conducted by the Danish Chamber of Commerce found that businesses had lost 35 billion kroner in turnover during August and September 2021, also due to a labour shortage.
Although the newer survey revealed a smaller amount of lost revenue, the problem is just as big according to Mikkelsen.
“Things were going very, very badly back then. With this survey, it’s going very badly. Losing 31 billion kroner is a loss to our social welfare society. You’ll have less money for things like hospitals,” he said.
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