Denmark: Many Danish jobs at risk of being automated

Key features for Denmark include the finding that more than one-third of all Danish jobs are at high risk of automation in the coming decade or two. Surprisingly, Denmark has the lowest share of renewables in the energy mix of all five Nordic countries, despite having seen the highest increase between 2004 and 2017.

Changes in the Danish labour market

Information technology, artificial intelligence and robotisation are expected to have a significant impact on the Nordic labour markets in the future, allowing for automation of various work tasks. According to the report, Denmark stands out in the Nordic Region when it comes to the share of jobs with a high risk of being automated. While this applies to the large majority of Danish municipalities, the share is highest in rural areas, notably in the western part of Jutland.

Around 37% of all Danish jobs are at high risk of being automated, whereas the Nordic average is 32%. At the same time, many new jobs are being created, especially in the bioeconomy sectors in all Danish regions, which are primarily benefitting the more rural parts of the country.

Population ageing and urbanisation are two key drivers of change in the Nordic labour market. The report predicts that by 2040, 81% of all Danish municipalities will have experienced a decrease in their working-age population. This is a higher percentage than in the other Nordic countries, except Finland, where a decrease is expected in nine out of ten municipalities. Conversely, the working-age population is projected to grow in the larger urban areas, such as Copenhagen, Aarhus and Aalborg.

Share of renewable energy lowest in Denmark – but with the largest increase

Denmark is one of only eleven EU countries that have already achieved their 2020 renewable energy targets. The share of renewables in gross final consumption of energy grew 21% between 2004 and 2017, which was the largest relative increase in the Nordic Region. While aiming for a 50% renewable energy mix by 2030, Denmark’s current share, 36%, is the lowest in the five Nordic countries. Iceland takes the lead with 72%, followed by Norway at 71%, Sweden at 56% and Finland at 41%.

The report highlights Danish building regulations and energy efficiency requirements as some of the strictest in the world. Despite this, energy consumption for buildings has remained unchanged in Denmark, while neighbouring Sweden managed to reduce per capita building energy consumption by 12% between 2000 and 2017.

Region Hovedstaden ranks second in the Regional Potential Index 2020

State of the Nordic Region ranks all regions in the Nordic countries in the Regional Potential Index, comparing them on a range of demographic, economic and labour force indicators.

The Capital Region of Denmark, which includes the capital city, Copenhagen, is ranked second in this year’s index with 650 points. Oslo takes the top spot with 717 points, performing better than the other Nordic capital regions on all three dimensions: demography, economy and labour market. Apart from being the most urbanised, the capital regions perform well on economic indicators, with high employment rates, the highest GRP per capita and the largest investments in R&D.

In contrast, the economy is the weakest dimension for rural regions, due to limited GRP and R&D investment, especially in Denmark, Finland and Sweden. Out of the 66 regions ranked in the RPI, Region Midtjylland is ranked 15th, Syddanmark 27th, Nordjylland 36th and Sjælland 47th.

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