– The data tell us that we have a sound and robust economy. When companies are short of workers, jobless workers rise to the challenge. This is positive, but companies need to face facts and realise that they will have a shortage of skilled workers in the next five to seven years. I would therefore encourage companies to use the boom times to train more skilled workers and to allocate resources to easing in the long-term unemployed on the labour market says LO-President Lizette Risgaard.
More flexible budget
The economic experts from The Danish Economic Council (DØR) point to the fact that the current budget act imposes more limitations than necessary. Instead, Denmark should have a multiannual focus in its financial management.
– I?m pleased that the economic experts point to the fact that an overly tight budget act represents an unnecessary obstacle for the Danish economy. During the financial crisis, the politicians limited the scope for action in their fiscal policies. This meant that the recession lasted longer than it otherwise would have. Coming generations should make a note of and learn from this.
No need to ease access to foreign labour
Furthermore, the economic experts suggest easing the access to foreign labour (from third countries). This does not make sense, however. The current minimum pay that a foreigner has to earn in order to obtain a residence- and work permit in Denmark is comparable with the average wage for electricians or blacksmiths, and it is therefore not necessary to lower that threshold even further. In addition to this, there exists an approved list of work functions that are affected by labour shortages.
– It therefore makes no sense to make it easier for companies to hire workers from third countries on a lower wage. There are still unemployed Danish workers in need of a job. And all employers have access to 250 million European workers. If that is not enough, they might find it useful to invest more in recruitment.
The economic experts also predict modest pay rises and declining real wages.
– If there was an actual lack of manpower, wages would increase markedly more than they do today. This indicates that the Danish labour market is not under pressure, concludes LO-President, Lizette Risgaard.