Competence mobility

How can labour market mobility in the Nordic Region be increased?

“Although we have so much in common and are quite integrated in many ways, it seems like the Nordic countries have moved away from each other culturally in the past decades. With globalisation, what is further away has come closer, and as a result, we have somewhat lost interest in what is closest. We cannot change culture and people’s interests, but authorities must lead by example. And even though it takes time, structure builds culture.”  - NN, Vestfold Telemark

It has been possible to work in another Nordic country since the establishment of the joint Nordic labour market in the 1950s. Nevertheless, only 1.7% of the working-age population work in a different Nordic country from the one in which they were born, and only 0.5 % commute to a job in another Nordic country. This is below the EU average of 1%. 

In this story map, we will look into why people choose to work in another Nordic country and why not. Welcome to explore facts about the Nordic labour market mobility and stories from Greater Copenhagen, Greenland and Vestfold Telemark by scrolling down the story map! 

Labour mobility experiences  

In this project we selected three case study regions, namely Greater Copenhagen, Vestfold Telemark and Greenland, where we interviewed stakeholders from the government, business sector and trade unions to learn more about factors that enable and hamper cross-border labour market mobility. 

 Greater Copenhagen

Greater Copenhagen is located on the border between Sweden and Denmark and is connected by a bridge between Malmö and Copenhagen. While unemployment levels on the Swedish side are high, there is a lack of labour on the Danish side, which indicated that there seems to be large potential for labour market migration and commuting. 

Meet Ella and Aisha, who are applying for jobs in restaurants in Denmark.

Ella and Aisha from Greater Copenhagen

Labour market and competence mobility in Greater Copenhagen 

According to the Labour Force Survey (2022), the unemployment rate in the Greater Copenhagen is 6.4%. It is higher than the Danish average, but lower than the Swedish average.   

Unemployment rate 2022

Data source: Labour force survey (SCB & DST).  

Share of employment by sector

The highest employment in Greater Copenhagen could be found in the health and social work sectors, scientific and technical companies, and trade.

Data sources: SCB and DST. Note: NACE codes between brackets 

Largest Nordic minority group in Greater Copenhagen

Despite the potential for labour market mobility, the findings of this case study illustrate many obstacles. These primarily involve bureaucratic red tape, but also cultural differences to some extent. The main drivers for taking a job across the border in the Greater Copenhagen region are economic and the chance to experience something new.  

In the map below, you can discover the percentage of the population in the ages between 15-64 years old that are working in the Greater Copenhagen area but originates from another Nordic country. The map shows that it is mostly Danes working in Sweden, and that people from Greenland and Sweden are the most common foreign Nordic workers in Denmark.

Vestfold Telemark

Vestfold Telemark region is located west of Oslo in Norway. Nordic workers in the region come from Sweden mostly, but also to some extent from Denmark and other countries. Norwegian salaries have typically been higher than those in Sweden, which has attracted workers from Sweden, especially in the healthcare sector. 

Meet Camilla, a Swedish nurse working in Norway.

Camilla, from Vestfolk Telemark

 

Labour market and competence mobility in Vestfold Telemark 

The unemployment rate in Vestfold Telemark is 4.2% (2022). It is slightly higher than the Norwegian average. 

Unemployment rate 2022

Data source: Nordregio’s calculations based on SSB. LFS adjusted numbers. Unemployment is measured in November 

Share of employment by sector

More than a fifth of the working population in Vestfold Telemark works in the health and social work sectors.

Data source: SSB. Note: NACE codes between brackets 

Largest Nordic minority group in Vestfold Telemark

The map below shows the percentage of population in the ages between 15-64 years old that are working in the Vestfold Telemark area, but originates from another Nordic country. The largest Nordic minorities are Danes and Swedes.

Norway has had a strong attraction force for workers from abroad, not only because of the higher wages and historically favourable exchange rates, but also for the beautiful nature and scenery. The Covid-19 pandemic and the mobility restrictions that followed hampered workers’ cross-border mobility and may also have had long-term effects on trust in taking a job in another Nordic country.    


Greenland

Greenland is a self-governing territory which is located very remotely from the Nordic countries. Greenland has a special relationship with Denmark, and hence labour market mobility between Denmark and Greenland is quite extensive. 

Meet Jesper from Denmark, who is working on a contract in Greenland.

Jesper, from Greenland

Labour market and competence mobility in Greenland 

One of the main challenges for Greenland is that of remoteness and long distances. To facilitate labour market mobility to Greenland, more investments in transport infrastructure are needed.

Greenland not only has a lack of labour but also a lack of housing, which causes problems for the local population and people that come to Greenland to work. 

Unemployment rate 2021

In Greenland, 3.7 % of the population was unemployed in 2021.

Share of employment by sector

Almost half of Greenland's working population are employed in public authorities, national defence, education and human health sectors.

Data sources: Statistics Greenland. Note: NACE codes between brackets


Nordic labour market migration and commuting 

Although it has been possible to work in another Nordic country for more than half a century, the figures have been stable or even declining since 1990.

That poses the question of whether this is a problem. The Nordic Council of Ministers’ vision is for the Nordic Region to be the most sustainable and integrated region in the world by 2030, and labour market mobility can be expected to play a role in sustaining integration.

Bigger labour markets are acknowledged to lead to economic growth and higher wages, and several of the interviews conducted in the project point to untapped potential. 

Nordic foreign-born, working age population

Nordic labour market migration has different importance in the different countries and territories (see figure below). While the share of the working-age population born in another Nordic country has steadily decreased in Sweden and Greenland since 1990, the share in Åland and the Faroe Islands has shown the opposite pattern over the last two decades.

Nordic foreign-born, working-age population  

Graph from State of the Nordic Region, 2022 of 15-64 year old, foreign-born, in the Nordic countries 1990-2021. Source: Nordic Statistics.


Labour market migration

This map illustrates the largest Nordic minority groups in the working-age population at the regional and municipal levels in the Nordic countries. For example, while the largest minority in Norway are born in Sweden, those born in Sweden constitute the largest minority in absolute numbers in Denmark and in the capital region of Hovedstaden while the largest minority in all other Danish regions were born in Greenland.

In Sweden, the largest Nordic-born minority is from Finland, but the regional differences show that proximity matters.

Labour market commuting in the Nordics 

Also as regards commuting, proximity matters. However there is a lack of up-to-date statistics, and the map here shows commuting between the Nordic countries based on average data from 2015-2018.

Approximately 49,000 people had a job in a Nordic country in which they were not residents 2015-2018. Compared to the EU average of 1%, only 0.5% of the Nordic working-age population commuted to a job in another Nordic country.


Main challenges for cross-border labour market mobility 

The results from our study show that there are different challenges at play. To analyse the findings, a model based on previous research literature was used, focusing on push and pull factors that work as attraction forces, driving forces and intervening obstacles in various fields - illustrated in the figure below.

Three keys to understanding cross-border labour market mobility were identified: 1. Attraction forces for moving or commuting to a job in another Nordic country are mainly social and cultural. 2. Driving forces are mainly economic. 3. Obstacles are mainly administrative.

While the attraction forces are mainly social and cultural, the main driving force for taking a job in another Nordic country is economic and it is in the administrative field we find the main obstacles.

The illustration shows that the main driving forces are found to be the economic benefits of working in another Nordic country, i.e. it is often higher wages or better job opportunities that influence workers to seek work in another Nordic country.

However, while economic factors do play a role also as an attraction force our findings show that they are usually not sufficient in themselves. The desire to experience something new in terms of culture, social life and natural surroundings plays a crucial role as an attraction factor.

The intervening obstacles are found in several fields, but bureaucratic red-tape connected to the political/legal/administrative field stands out as the major obstacle to taking a job in another Nordic country.

“We know what the main border barriers between the Nordic countries are. But making the necessary changes for a more seamless integration demands political will at the highest level. Leadership is therefore the most important thing moving forward."  - NN, Vestfold Telemark


Solutions for cross-border labour market mobility 

One of the aims of this study was to point to Nordic learning and discuss how Nordic labour market mobility can be enhanced. 

Study findings

The findings of this study show that three main areas should be targeted to foster Nordic labour market mobility and hence contribute to achieving the Nordic vision of being the most integrated region in the world.

Three ways to foster Nordic labour market mobility:

1. Increase coordination of rules and regulations between the Nordic countries to facilitate cross-border labour market mobility

2. Support initiatives to increase interest in Nordic culture and languages to sustain Nordic integration

3. Increase Nordic collaboration to support Nordic Freedom of Movement.

“Simplification and mutual understanding would make things so much easier regarding administrative parts of cross-border mobility. We should put all efforts into making the right thing the easy thing to do.” - NN, Greater Copenhagen

Related Nordregio publications

Learn more about the solutions for cross-border labour market mobility in the policy brief  "How can labour market mobility in the Nordic Region be increased?" .

Learn more from Nordic institutions and services that support Nordic Freedom of Movement 

 The Nordic Freedom of Movement Council  strives to eliminate cross-border obstacles between the Nordic countries. Learn more about its work on Nordic Co-operation's  Border database  and in its  yearly report  from 2022.

 Info Norden  provides those wishing to move, work, study or start a business in the Nordic countries with general information and shortcuts. 

 Grensetjänsten  and  Öresund Direkt  provide information about moving, working, studying and doing business across the Swedish-Norwegian and Swedish-Danish borders. 

About this storymap  

This storymap is based on the research project  Re-start competence mobility in the Nordic Region , which is part of the regional co-operation programme and the  “Green, Innovative and Resilient Regions”  thematic group funded by the Nordic Council of Ministers. 

Apart from quantitative data analysis, interviews were conducted with 37 key stakeholders in three case study regions and a workshop with 25 participants was held in November 2022, including an open-ended survey. The three case study regions were Greater Copenhagen, Vestfold Telemark and Greenland. The research results have been published in State of the Nordic Region 2022, a research working paper and a policy brief.  

Text

Anna Lundgren & Ágúst Bogason 

Editor

Vaida Razaityte 

Statistics & visuals

Anna Vasilevskaya, Gustaf Norlén & Maria Bobrinskaya 

Layout

Louise Ögland

Graph from State of the Nordic Region, 2022 of 15-64 year old, foreign-born, in the Nordic countries 1990-2021. Source: Nordic Statistics.