Report: Danish salaries are world's second highest
Sky-high salaries hurt competitiveness of Danish commerce, say business leaders The biggest financial crisis in living memory, political calls for pay restraints, and fast-growing competition - not only from China and India, but also from neighbouring countries like Germany and...
The biggest financial crisis in living memory, political calls for pay restraints, and fast-growing competition - not only from China and India, but also from neighbouring countries like Germany and Sweden - have apparently had little effect on salary levels in Denmark.
A new study by the Swiss bank UBS based on figures from 2009-10 shows that Danes are among the highest paid workers in the world. Only in Zurich, Switzerland did the workers earn higher wages on average than those in Copenhagen. In contrast, our closest neighbours in Sweden and Germany earn significantly less.
"Danish salaries have remained at the top of the list, pretty much unchanged, since 2003. It is worth noting that the difference in salaries is not just big globally, but also regionally. In western Europe workers earn approximately three times as much as their counterparts in eastern Europe," said Daniel Kalt, head of economic research for UBS, told Berlingske newspaper.
"That says a lot about the economic traffic we see globalisation. Workplaces are moving from west to east, while eastern workers are looking to the west for work opportunities," Kalt added.
According to Jan Rose Skaksen, an economics professor at Copenhagen Business School, the new salary figures from UBS underscore what he often hears from companies closing shop in Denmark and moving abroad.
"When we ask businesses, they all answer that the high Danish salaries is the main reason why they are moving their production overseas. It's crucial that we get Danish salary growth under control, if we want to create growth in Denmark again. Otherwise, the relocations will continue."
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