Long-term Residency of Foreigners in Denmark: Statistical Analysis
Denmark's Foreign Worker Retention: A Closer Look By Richard Orange
Denmark is in dire need of foreign labor to tackle labor shortages across numerous sectors, and retaining these workers is crucial to avoid constantly recruiting new international talent. But is Denmark struggling to keep more foreign workers than before? How does Denmark compare to other countries in this regard?
Embrace the Talent, Not the Struggle
Clearly, it's smarter to keep skilled foreign workers within Denmark's borders, rather than continually hunting for replacements on the international stage. National statistics hint that Denmark isn't experiencing a decline in foreign worker retention rates, nor is there an increasing trend of foreigners leaving the country compared to those arriving.
Data from Statistics Denmark reveals that while the number of people leaving Denmark has escalated over the last three years, this increase has been largely offset by more foreign arrivals. Overall, net migration is following the historical pattern, recovering from the slump in the pandemic and the post-pandemic rebound.
A Decade of Population Trends
Statistics Denmark's 2023 study, "Befolkningens udvikling," reports that more than half of the foreign citizens who arrived in Denmark since 2003 have since left, with most departing within three years. In immigration context, the "retention rate" signifies the proportion of immigrants who remain in a country after a particular duration, instead of returning to their native land. This metric is often used to evaluate how effectively a country retains international students, workers, or other migrants after their preliminary stay.
Be aware that these Danish stats do not consider the rationale for each individual's migration to Denmark (such as asylum, work, study, family reunification) nor track why people left.
The Ebb and Flow of Foreigners in Denmark
Denmark's three-year retention rate, representing the percentage of foreigners still living in Denmark three years post-arrival, has predominantly fluctuated between 40% and 50% over the past 20 years. The rate dipped for a few years after peaking at 51.4% in 2015, possibly due to immigration, work-permit, and citizenship regulations tightening following the refugee crisis. However, the 2020 figure—the latest year available for a three-year retention rate calculation—indicates that the percentage of arrivals opting to stay in the country seems to be on an incline once more. This upward trend appears to persist, as the percentage of foreign citizens still residing in Denmark after one year has risen steadily since 2019, following a decline between 2015 and 2018.
Denmark's Foreign Worker Retention: A Comparative Study
Unquestionably, Denmark is not an anomaly in its retention rate. A 2024 OECD study comparing the five-year exit rate of foreign citizens arriving in 11 European countries between 2010 and 2014 found that:
- Lower retention than Germany, Italy, and Spain
- Comparable to Austria
- Higher retention than France, the UK, and Sweden
Sweden's 5-year-exit rate, around 31%, is roughly half that of Denmark, but this might alter as the nation's right-wing government enacts stricter immigration policies.
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Further Reading
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- Based on the statistics, it's more advantageous for Denmark to retain skilled foreign workers within the country, rather than continuously searching for replacements in the international market.
- Interestingly, data from Statistics Denmark suggests that while more people are leaving Denmark, this trend is largely counterbalanced by increased foreign arrivals, maintaining a stable net migration pattern.
- According to Statistics Denmark's 2023 study, "Befolkningens udvikling," approximately half of the foreign citizens who arrived in Denmark since 2003 have since departed, with most leaving within three years.
- The retention rate of foreigners in Denmark, specifically the percentage of foreigners still living in Denmark three years post-arrival, has generally vacillated between 40% and 50% over the past 20 years.
- In comparison to other European countries, Denmark exhibits higher retention rates of foreign citizens than France, the UK, and Sweden, but lower rates than Germany, Italy, and Spain.
