Over the last two decades, the Greater Copenhagen Region (GCR) has become an essential hub for economic activity and development in Scandinavia. Cross-border labour mobility has grown significantly since the opening of the Oresund Bridge in 2000. Yet, the region faces increasing challenges with labour and skills shortages combined with ongoing unemployment challenges, especially among third-country nationals (TCNs) on the Swedish side of the region. This chapter presents a long-term strategy for greater integration of the cross-border labour market in the Greater Copenhagen Region, focusing on the inclusion of TCNs. Recommendations to support the region in achieving short- and long-term changes in two areas include: 1) measures to strengthen cross-border labour market inclusion of TCNs in particular and 2) measures to strengthen co-ordination of employment and skills policies across the border more generally.
Mobility and Integrated Labour Markets for Third‑country Nationals in Greater Copenhagen
1. Assessment and Recommendations
Copy link to 1. Assessment and RecommendationsAbstract
The potential for further cross-border integration is significant in the Greater Copenhagen Region
Copy link to The potential for further cross-border integration is significant in the Greater Copenhagen RegionOver the last two decades, the Greater Copenhagen Region (GCR) has become an essential hub for economic activity and development in Scandinavia. The region, a political construct, spans four regions, 85 municipalities and is home to 4.5 million inhabitants across southern Sweden (Region Scania and Halland) and eastern Denmark (the Capital Region of Denmark and Region Zealand). At its core are two major cities: Copenhagen (the capital of Denmark with around 640 000 inhabitants) and Malmö (the third-largest city in Sweden with around 360 000 inhabitants). These two parts of the cross-border region are connected by the 7.8km Oresund Bridge, which spans the Oresund strait. Since the opening of the bridge in 2000, economic and labour market integration in the region has been fostered through various initiatives. Business collaboration has flourished through cluster organisations, such as those focusing on life sciences and technology, while high levels of foreign direct investment continue to drive job creation in the region, Political collaboration is supported by the cross-border organisation Greater Copenhagen, which includes all municipalities and regions in the area, alongside bilateral agreements between the two countries.
While labour market performance in GCR has been consistently strong in recent years, the positive headlines mask significant differences within the region. In 2023, the employment rate among 16- to 64-year-olds in the GCR was slightly higher than respective countries at 77.9%, compared to 76.6% in Denmark and 77.4% in Sweden. The unemployment rate in the same age group was 6.5% in 2023, higher than the OECD average of 4.8% and slightly above the EU-27 average of 6.0%. However, intra-regional differences in the employment and unemployment rates exist. While the employment rates in the Capital Region (79.8%) and Region Zealand (79.2%) are in line with the GCR average (79.7%), the employment rate gap between Malmö (71.9%) in Region Scania and Region Halland (84.8%) reached 12.9 percentage points in 2022. And while the Capital Region (2.5%) and Zealand (2.3%) in Denmark are nearing full employment, Scania (6.6%) reports considerably higher unemployment rates.
The relatively high unemployment rates on the Swedish side contrast with mounting labour and skills shortages, especially on the Danish side. In the first quarter of 2024, the job vacancy rate (i.e. the number of job vacancies as a percentage of labour demand) in the Capital Region of Denmark was 2.8%, compared to just 0.8% in Southern Sweden. This suggests that employers on the Danish side of the GCR face a much larger share of unfilled positions than their Swedish counterparts, underlining the significant challenge of labour and skills shortages in Copenhagen. Enhanced cross-border labour mobility could help address these challenges by expanding the pool of labour available to employers in the region. Furthermore, improved cross-border mobility could strengthen talent attraction and retention strategies by increasing job opportunities for international students and the spouses of international workers relocating to the region.
Figure 1.1. The demand for workers on the Danish side of the GCR is significantly higher than on the Swedish side
Copy link to Figure 1.1. The demand for workers on the Danish side of the GCR is significantly higher than on the Swedish sideJob vacancy rate in the Greater Copenhagen Region in national comparison, 2015 to 2024
Note: Job Vacancy Survey data. Annual data for Sweden calculated as the quarterly average.
Source: Statistics Denmark table LS02 and Statistics Sweden Recruitment and Vacancy Rate database.
Cross-border work in GCR has grown substantially since the opening of the Oresund Bridge, yet it remains largely a one-way street. In 1999, the year prior to the bridge's opening, approximately 2 800 individuals commuted across the border for work. By 2001, one year after the bridge became operational, this number had risen to 4 300. During the COVID-19 pandemic, cross-border work experienced a temporary drop before reaching an all-time high of 20 500 in 2023. Of these, around 19 000 lived in Sweden and worked in Denmark, and only 1 500 lived in Denmark and worked in Sweden. This imbalance is primarily influenced by economic dynamism and incentives in the region. Differences in currency exchange rates currently provide Swedish workers employed in Denmark with a 50% wage premium. Significantly lower housing costs in South Sweden compared to Eastern Denmark further encourage individuals to reside on the Swedish side while working in Denmark. In addition, the labour market on the Danish side of the region generally experiences higher labour demand and labour or skills shortages.
Despite the increase in cross-border work, the overall level remains modest compared to within-country and international benchmarks, indicating that the region is not yet a fully integrated labour market. Cross-border work in GCR is low compared to the EU’s largest cross-border labour markets, such as the Greater Region (with around 250 000 cross-border workers between regions in Belgium, Germany, France and Luxembourg) and the Meuse-Rhine Region (with around 75 000 cross-border workers between regions in Belgium, Germany and the Netherlands). With total employment in GCR reaching 2.3 million in 2023, cross-border workers accounted for less than 1% of the region’s workforce. Cross-border work is also low compared to within-country commuting between Danish municipalities or Swedish municipalities. According to a recent study by Greater Copenhagen, as many as 95 000 individuals could commute across the Oresund if cross-border commuting followed the same patterns observed within Denmark or Sweden – more than four times the current rate.
Figure 1.2. Cross-border work in the Greater Copenhagen Region is largely a one-way street
Copy link to Figure 1.2. Cross-border work in the Greater Copenhagen Region is largely a one-way streetCross-border work in the Greater Copenhagen Region, 2019-2023
Note: 2023 total calculated as the quarterly average.
Source: Oresund Statbank table OEPEN7AD and table OEPEN7KD.
The integration of the GCR’s labour market has created opportunities for many residents but third-country nationals on the Swedish side have yet to benefit significantly. In the European Union (EU), a third-country national (TCN) is defined as any person who is not an EU citizen and, as a result, does not enjoy the fundamental EU right to free movement. Depending on the residence permit, they can travel or move to another EU Member State in certain cases and under specific conditions. Between 2014 and 2023, the average population of non-EU citizens in southern Sweden stood at 66 000, accounting for around 4% of the total population in the Swedish part of GCR. While relatively small, this group might grow in the future if pathways to citizenship narrow in light of changes in the rules for granting citizenship in Sweden. Labour market outcomes for TCNs in the region highlight significant disparities. For example, only 44% of less educated TCNs aged 15 to 64 in South Sweden are employed, compared to 51% across the EU-27 and 57% in Denmark’s Capital Region. Barriers to labour market inclusion also impact higher-skilled TCNs. Only 62% of medium-educated TCNs in South Sweden are employed, far lower than the employment rate for Swedish nationals with similar education levels in southern Sweden (79%) and TCNs in the EU-27 (65%), Denmark’s Capital Region (72%), and Zealand (80%).
Enhancing labour market integration and unlocking GCR’s economic potential requires addressing several barriers to cross-border labour mobility. Previous research has identified various challenges, including border controls, inconsistent rules and regulations for apprenticeships and validation of education, incoherent taxation systems, and gaps in cross-border workers' employment and social support systems. While these challenges affect all residents seeking work across the border, TCNs face additional barriers, particularly those stemming from national and EU legislation on temporary and permanent work and residence permits.
What are the policy options for the Greater Copenhagen Region to strengthen cross-border labour market inclusion, especially for third-country nationals?
Copy link to What are the policy options for the Greater Copenhagen Region to strengthen cross-border labour market inclusion, especially for third-country nationals?This OECD report explores options to enhance cross-border labour market inclusion, with a particular focus on TCNs in the Greater Copenhagen Region. Drawing on an in-depth analysis of the region and lessons from other EU cross-border regions, the report provides recommendations to 1) strengthen cross-border labour mobility of TCNs and 2) improve the co-ordination of employment and skills policies across borders. The analysis leverages insights from four EU cross-border regions: the Greater Region (Belgium, France, Germany, and Luxembourg), the Meuse-Rhine Region (Belgium, Germany and the Netherlands), the Austria/Germany cross-border region and the Upper Rhine Region (Germany, France and Switzerland).
The recommendations are presented as a long-term strategy aimed at supporting both immediate and sustained change in GCR. This strategy has been developed with two key considerations: 1) the division of responsibilities across levels of government in Denmark and Sweden, which constrains the ability of regions and municipalities to implement legislative changes, and 2) the broader policy context in Denmark and Sweden. The strategy considers the dual objectives of national governments to limit migration to protect social cohesion while simultaneously attracting international talent to address labour and skills shortages.
The actions outlined in this report aim to facilitate cross-border labour mobility for TCNs already residing in the region without requiring fundamental changes to migration policies in Denmark and Sweden. The strategy provides a roadmap for fostering greater cross-border labour market inclusion through local, regional and national actions. Furthermore, elements of the strategy may contribute to broader talent attraction and efforts by increasing flexibility for cross-border mobility.
Recommendations for strengthening cross-border labour mobility of TCNs
Despite the low employment rate among working-age TCNs on the Swedish side of the Greater Copenhagen Region and high labour demand on the Danish side, only a few TCNs work across the border. In 2015, the most recent year for which data is available, most cross-border workers residing in Sweden and working in Denmark held either Swedish (56%) or Danish (37%) citizenship. Approximately 6% were citizens of an EU member state other than Sweden or Denmark, while only 1% were TCNs, with over half of this group holding citizenship of an Asian country.
Figure 1.3. Third-country nationals constitute a very small share of the GCR’s cross-border workers
Copy link to Figure 1.3. Third-country nationals constitute a very small share of the GCR’s cross-border workersShare of cross-border workers residing in Scania or Halland who work in Denmark by nationality, 2015
Note: EU citizens include the UK but not Denmark and Sweden.
Source: OECD calculations based on Swedish register data.
TCNs face multiple barriers to cross-border commuting in the Greater Copenhagen Region
The process of cross-border commuting for TCNs involves two key steps: 1) obtaining a work permit in the country of work and 2) understanding the implications for their residence permit (temporary or permanent) in the country of residence. The first step requires TCNs to secure a work permit in the destination country. Recent legislative changes and court rulings in Denmark and Sweden allow TCN cross-border workers to obtain a work permit without the need for an accompanying residence permit. The second step involves assessing how cross-border work might impact the residence permit and prospects of naturalisation (i.e., obtaining citizenship in the country where you reside). In many OECD countries, including Denmark and Sweden, residence permits and naturalisation depend on active employment, income self-sufficiency, and physical presence. However, in Demark and Sweden, cross-border work is often not recognised as active employment contributing to economic self-sufficiency. In Sweden, the lack of clear legislation and an official definition of cross-border commuting means that cross-border work may be interpreted as a period of absence from the country. This can lead to the withdrawal of a residence permit.
The risk of losing a residence permit or negatively affecting eligibility for naturalisation varies across different categories of TCNs. Table 1.1 summarises the legal implications for different groups. Legal ambiguity characterises the situation for many TCNs engaged in cross-border commuting. This uncertainty hinders the ability of public employment services (PES), cross-border information points, and other stakeholders to effectively advise and guide TCNs or businesses.
Table 1.1. Overview of the assessment of options for TCN cross-border work in GCR
Copy link to Table 1.1. Overview of the assessment of options for TCN cross-border work in GCR|
Assessment of options for cross-border commuting for TCNs in GCR |
||
|---|---|---|
|
TCN category |
DENMARK 🡺 SWEDEN |
SWEDEN 🡺 DENMARK |
|
Labour migrants |
The residence permit will be withdrawn since the legal ground for the permit is no longer in place |
The residence permit will be withdrawn since the legal ground for the permit is no longer in place |
|
Students |
For most students (e.g. in higher education institutions), taking up employment in Sweden may result in the termination of their residence permit in Denmark unless 1) the employment in Sweden is an internship in connection with the study programme in Denmark or 2) the student continues studying full-time in Denmark. In both cases, it is still a condition to maintain the residence permit that the student resides in Denmark. PhD students get a limited work permit, which allows them to take on other work in addition to the full-time work as a PhD student. When the residence permit for studies ends, the TCN may stay on a jobseeker residence permit. As long as the student resides in Denmark while the jobseeker residence permit is valid, it is allowed to commute to work in Sweden |
Taking up employment in Denmark may result in terminating their residence permit in Sweden unless the student continues studying full-time in Sweden. When the residence permit for studies ends, the TCN may stay on a jobseeker residence permit. If the TCN is employed in Denmark, the legal grounds for this residence permit will no longer be in place. |
|
Trainees/internships |
Trainees and interns must have a work permit in Denmark. Consequently, their residence permit will be withdrawn since the legal basis for it is no longer in place. |
Trainees and interns must have a work permit in Sweden. Consequently, their residence permit will be withdrawn since the legal basis for it is no longer in place |
|
Family members of TCNs |
When granted a residence permit in Denmark, family members of TCNs obtain the right to work in Denmark but are not obligated to do so. Should they choose to work outside Denmark, they must be granted the necessary permits. Employment in Sweden will not fully meet the employment requirement for a permanent residence permit, which is the precondition for applying for naturalisation to become a Danish citizen. Two years of employment abroad can sometimes be counted towards fulfilling the employment requirement of three years and six months. |
When granted a residence permit in Sweden, family members of TCNs obtain the right to work in Sweden but are not obligated to do so. As the residence permit relies on the work activity of a family member, cross-border commuting should, in principle, be an option. Yet, there might be a risk to the validity or renewal of the residence permit or obtaining a permanent residence permit if the Swedish Migration Agency deems that the grounds for stay are altered due to cross-border commuting. In particular, employment in Denmark will not fulfil the employment requirement for a permanent residence permit in Sweden. |
|
Family members of EU citizens |
The risk of losing their legal residence status or obtaining a long-term residence permit in Denmark should be very low as the residence is based on the Residence Directive 2004/38. Family members of EU citizens obtain the right to work in Denmark but are not obligated to do so. They have the option to cross-border commute. |
The risk of losing their legal residence status or obtaining a long-term residence permit in Sweden should be very low as the residence is based on the Residence Directive 2004/38. |
|
Asylum seekers |
Cross-border commuting will not affect the assessment of an asylum application. However, asylum seekers must be present and available whenever necessary during asylum application processing. Moreover, if the asylum seeker has a strong attachment to Sweden in the form of i.e. close family ties or a long history of residence in Sweden, an asylum application may be rejected because the asylum seeker can take up residence in Sweden. Cross-border commuting to Sweden will not in and of itself indicate a sufficiently strong attachment to Sweden in this regard. |
Based on existing praxis, there is a high risk that the Swedish Migration Agency will find that the need for asylum has changed if the person engages in cross-border commuting. |
|
Permanent residence permit holders |
Once a permanent residence permit is acquired, there are no employment obligations in order to keep it. Consequently, there should be no risk of losing the permanent residence status due to cross-border commuting. However, employment is required to obtain naturalisation to become a Danish citizen. In a few situations, up to two years of employment abroad can be counted towards fulfilling the employment requirement of three years and six months (when stationed or deployed abroad or if there is a significant reason for working abroad). The permanent residence permit can be revoked if the TCN no longer reside in Denmark (e.g. when moving to Sweden). |
Once acquired, there should be little risk of losing permanent residence status as the place of residence is kept in Sweden. However, longer periods of stay outside the country might change the national authorities' assessment of the validity of the permanent residence permit. In addition, employment in Denmark will not fulfil the employment requirement for naturalisation in Sweden. |
|
Posted workers |
Posting should not affect the validity of the work and (permanent) residence permit in Denmark. However, longer periods of stay outside the country might affect the national authorities’ assessment of the validity of the (permanent) residence permit. |
Posting should not affect the validity of the work and (permanent) residence permit in Sweden. However, longer periods of stay outside the country might affect the national authorities’ assessment of the validity of the (permanent) residence permit. |
Source: OECD assessment.
While the overall challenge of facilitating cross-border work for TCNs is similar across other EU cross-border regions, some have introduced measures to address this issue. The three cross-border regions reviewed (Greater Region/Luxembourg, the Meuse-Rhine Region and the cross-border region Austria/Germany) are all governed by the EU legal migration framework. Combined with national legislation on residence permits and naturalisation requirements, this framework provides limited flexibility for TCNs to engage in cross-border work. However, as summarised in Table 1.2, certain countries have adopted specific rules to facilitate cross-border work. These measures offer insights that may help address similar challenges in the Greater Copenhagen Region.
Table 1.2. Learnings from other EU cross-border regions – facilitating TCN cross-border mobility
Copy link to Table 1.2. Learnings from other EU cross-border regions – facilitating TCN cross-border mobility|
Country |
Initiative |
|---|---|
|
Germany, Luxembourg |
Clear definition of cross-border commuting linked to labour mobility schemes |
|
Germany, the Netherlands |
Cross-border endorsement sticker/commuting card. The card serves as an administrative procedure to verify legal border crossings of TCNs and, thus, facilitate commuting. |
|
The Netherlands |
Special cross-border worker permit for TCN family members of EU citizens who commute |
|
Luxembourg |
Legislative changes to expand the pool of TCNs that may be granted a work permit; simplification of the work permit application procedure |
|
Germany |
Responsibilities for work and residence permits are combined in one agency, making the application process more manageable. |
|
All EU cross-border regions |
Permit schemes based on EU directives provide more possibilities for exercising (short-term) intra-EU mobility than nationally regulated residence and work permit schemes. |
Posting or intra-corporate transferees offer an alternative pathway for TCNs to work across borders. Posted workers and intra-corporate transferees are TCN labour migrants whose mobility is directly linked to their employer’s decision to post them across borders. Given the limited options for TCNs to engage in cross-border work, posting or intra-corporate transferees are the primary alternatives according to consulted stakeholders. Official commuting data do not account for such activities, yet GCR has seen a significant increase in workers posted from Sweden to Denmark. In 2021, 900 workers were posted from Swedish employers to Denmark, of whom 8.5% were TCNs. By 2023, the number of postings from Sweden to Denmark had nearly quadrupled to 3 422.
Facilitating cross-border commuting will require action in both Denmark and Sweden
Increasing cross-border labour market inclusion of TCNs in the Greater Copenhagen Region is a complex task requiring short- and long-term actions. While some barriers might be addressed through relatively simple measures in the near term, others will require more fundamental, long-term solutions. The proposed recommendations are organised into four overarching categories: 1) strengthening knowledge and information-sharing about TCN cross-border mobility; 2) administrative changes to simplify and improve case handling processes; 3) legislative changes that could be implemented in the short to medium term (1-3 years) and 4) legislative changes requiring more extensive adjustments, which may take longer to implement (beyond three years). The recommendations target stakeholders at the local, regional and national levels in both countries. Within each category, the recommendations are presented in no particular order.
Infographic 1.1. Focus areas to strengthen cross-border labour mobility of third-country nationals in the Greater Copenhagen Region
Copy link to Infographic 1.1. Focus areas to strengthen cross-border labour mobility of third-country nationals in the Greater Copenhagen Region
Source: OECD
Box 1.1. Strengthen cross-border labour mobility of third-country nationals (TCNs) in the Greater Copenhagen Region (GCR)
Copy link to Box 1.1. Strengthen cross-border labour mobility of third-country nationals (TCNs) in the Greater Copenhagen Region (GCR)Measures to strengthen knowledge and information-sharing about TCN cross-border mobility
Re-establish cross-border data on TCN commuting: To support policymakers and stakeholders in assessing the labour market inclusion of TCNs, cross-border commuting data could once again be collected and regularly published through the Oresund Database, as was the case until 2015. The ongoing Nordic Mobility 2 project could explore methods for data collection with a view to including the data in the Oresund Database.
Strengthen Oresund Direct's role in guiding TCNs and businesses on cross-border mobility: Denmark and Sweden could expand Oresund Direct’s capacity to support TCN cross-border mobility by 1) placing one or more case officers from national migration agencies in its physical office in Malmö, 2) enhancing staff knowledge about the main rules related to TCN cross-border commuting; and 3) including information about TCN cross-border mobility on its online portal (oresunddirekt.dk/oresunddirekt.se). The guidance could benefit both individuals and businesses in the region. Implementation would require clarifications of the administrative and legal framework, as outlined below, and additional resources from national authorities.
Influence national debates on labour shortages and talent attraction to include cross-border opportunities: While Denmark and Sweden prioritise talent attraction and retention strategies to overcome challenges with labour and skills shortages, these efforts often focus on attracting talent from distant countries, overlooking the potential workforce residing in neighbouring countries. Through the Greater Copenhagen organisation, the region could advocate for greater emphasis on cross-border labour mobility as means of addressing shortages.
Administrative changes
Issue guidelines on the implications of cross-border work for TCNs: The migration agencies in Denmark and Sweden, along with the Swedish Tax Agency, could issue targeted guidelines (both online and in physical brochures) to clarify the implications of cross-border work for residence permits and naturalisation. These guidelines could benefit individuals, businesses, Oresund Direct and other public bodies. The Swedish Tax Agency could also publish guidelines on how cross-border mobility affects individuals’ registration as emigrated.
Establish a mechanism for information sharing between Danish and Swedish migration agencies: Currently, no mechanisms exist for the migration agencies to share information on work permits or the withdrawal of residence permits. The lack of co-ordination complicates case processing and decision-making, potentially creating issues for Danish employers. Establishing formal information-sharing mechanisms could improve case handling and ensure compliance with national regulations.
Legislative changes – short-term solutions
Adopt EU-aligned definitions of cross-border commuting: Official definitions of cross-border commuting are essential to clarify requirements, such as how often workers must return to their country of residence to qualify as cross-border commuters. Denmark and Sweden could adopt the EU definition (returning to the country of residence at least once a week) and ensure its consistent application across ministries, agencies and other public bodies.
Introduce a cross-border worker card or sticker in Sweden: Building on the Danish model and similar systems in the Netherlands and Germany, Sweden could introduce a cross-border worker for TCNs with valid residence permits in Denmark. The card, issued free of charge, could be added to the worker’s passport, allowing entry to Sweden for work.
Clarify Swedish legislation on residence permits for cross-border commuters: The Swedish Government could amend legislation to address the implications of cross-border commuting for specific groups of TCNs, including asylum seekers, students, family members of TCNs and permanent residence holders. Legislative changes could clarify that cross-border commuting, as defined by the EU, does not count as a prolonged absence, and should not affect existing residence permits.
Recognise cross-border employment for residence and naturalisation eligibility: Bot the Swedish and Danish Governments could amend their respective Aliens Acts to ensure that cross-border commuting 1) is recognised as active employment and income activity, fulfilling economic self-sufficiency requirements, and 2) does not count as a period of absence for eligibility for temporary residence renewal, permanent residence status or naturalisation. This could apply to permanent residence holders, students during or shortly after completing their studies, family members and beneficiaries of international protection.
Expand cross-border work opportunities for TCN students and part-time work: Denmark and Sweden could introduce legislative changes to allow TCN students who have completed their studies and remain on a jobseeker permit to engage in cross-border work. Both countries could also consider enabling TCNs to combine part-time work in one country with income in their country of residence to meet income thresholds, drawing on inspiration from Austria’s approach.
Legislative changes – long-term solutions
Explore a bilateral agreement for a GCR residence permit: Denmark and Sweden could negotiate a bilateral agreement to introduce a GCR residence and work permit. This permit could provide streamlined access for individuals to reside and work on either side of the strait.
Taxation, social security, and digital ID solutions
Align the Oresund Tax Agreement with the Oresund Social Security Agreement: The recently updated Oresund Tax Agreement could be revised to better align with the Social Security Agreement by adopting consistent percentage caps for tax and social security.
Establish a digital ID solution for cross-border commuters: Authorities in Denmark and Sweden could enable cross-border commuters to obtain a PIN/samordningsnummer in Sweden or a CPR number in Denmark. This could facilitate access to a bank ID (Sweden) or MyID (Denmark), streamlining administrative processes for cross-border workers.
Recommendations for strengthening the co-ordination of employment and skills policies in the Greater Copenhagen Region for all workers (TCN or not)
Public Employment Services (PES) can enhance labour mobility and inclusion in a cross-border labour market by supporting job seekers in one part of a region to work in another. PES are fundamental to preparing and guiding unemployed individuals or those outside the labour market into employment through counselling, job matching, job search support, skills development programmes and targeted employer support. However, PES typically operates within national borders, limiting their services to residents of the country where they are based. As a result, support for cross-border labour mobility is rarely an integrated part of PES offerings. In EU cross-border regions where commuting is feasible and barriers to mobility are not too high, PES has the potential to address unemployment and labour shortages by extending its focus across borders. To achieve this, PES on either side of a border must ensure effective co-ordination and establish robust information-sharing mechanisms.
Measures PES can take to facilitate cross-border labour mobility include: 1) information exchange (i.e. providing job seekers and employers with information on working and recruiting across borders, as well as sharing data with public authorities to improve job matching (e.g. regional labour market and skills data), 2) joint service provision (i.e. co-ordinating and offering cross-border services such as counselling, job matching, job search support and skills development programmes), 3) one-stop-shop organisations (i.e. establishing joint centres to provide integrated services and tailor-made programmes for job seekers) and 4) policy co-ordination and capacity building (i.e. collaborating on research activities, policy alignment, and crisis management initiatives).
Infographic 1.2. Measures for co-ordination of employment and skills policies
Copy link to Infographic 1.2. Measures for co-ordination of employment and skills policies
Source: OECD
There are multiple stakeholders and measures in place to facilitate cross-border labour mobility in the Greater Copenhagen Region
Denmark and Sweden have well-developed, high-performing public employment services contributing to high labour force participation and low unemployment rates. Denmark operates a highly decentralised system, with its 98 municipalities playing a central role in delivering and designing services. Municipal efforts are supported by the National Agency for Labour Market Recruitment (Styrelsen for Arbejdsmarked og Rekruttering, STAR) and guided by policies and legislation developed by the Danish Ministry of Employment. In contrast, Sweden’s PES system is more centralised, with Arbetsförmedlingen, a national government agency, responsible for service delivery through a network of regional and local offices.
In the Greater Copenhagen Region, multiple organisations aim to facilitate cross-border mobility. The Nordic Council of Ministers, the official inter-government body for co-operation between the Nordic countries, supports mobility through analysis, information-sharing and financing of cross-border activities, including Info Norden, an information service for individuals planning to relocate, work, study or start a business in the Nordic region. The Council also oversees the Freedom of Movement Council, which seeks to address barriers to cross-border integration. At the regional level, key players include the Greater Copenhagen political co-operation, Oresund Direct and the Oresund Institute.
However, information and data-sharing between Danish and Swedish PES in the GCR remains limited and ad hoc. Labour market data is collected nationally by STAR in Denmark and Arbetsförmedlingen in Sweden, supported by their respective national statistics offices. While local PES centres in both countries can access several labour market tools, none include cross-border labour market data. Key initiatives such as the Oresund Institute (Øresundsinstituttet) and the Oresund Database (Øresundsdatabasen) facilitate data-sharing but have been undermined by a breakdown in the data-sharing agreement between Denmark and Sweden since 2015. In addition, there is no evidence that either PES system proactively uses these measures to support cross-border labour mobility in the region. Instead, both PES rely on the EURES (European Employment Service) portal and network overseen by the European Commission. Despite the network’s great value in supporting labour movements with the EU, it has limited focus on cross-border mobility in Denmark and Sweden.
Oresund Direct (Oresundirekt) is the primary resource for citizens seeking information about cross-border commuting. With a physical office in Malmö and an online information portal, Oresund Direct provides information on cross-border study and work opportunities in GCR. Although not an official public agency, it is central in facilitating cross-border labour mobility. It is often highlighted as a best practice example for other EU cross-border regions. However, Oresund Direct faces several challenges, including limited engagement from Danish national and regional authorities and the lack of systematic use of labour market data to guide individuals in finding cross-border job opportunities.
Joint policy initiatives, training programmes and co-ordination efforts between Danish and Sweden PES remain limited in numbers and scope. Since 2013, the primary framework for PES co-ordination in the GCR has been an agreement between STAR, Arbetsförmedlingen and EURES. This agreement has led to activities such as cross-border job fairs aimed at facilitating labour mobility in the region. However, further work under this agreement is currently on hold due to ongoing reforms of the Swedish PES
Comparatively, many EU cross-border regions are more advanced in co-ordinating employment and skills policies. As summarised in Table 1.3, regions such as the Greater Region, the Meuse-Rhine Region and the Upper Rhine Region have implemented a range of measures to enhance cross-border labour mobility through co-ordinated employment and skills initiatives.
Table 1.3. Learnings from other EU cross-border regions: Co-ordination of public employment services
Copy link to Table 1.3. Learnings from other EU cross-border regions: Co-ordination of public employment services|
Cross-border region |
Initiative |
|---|---|
|
Uppr Rhine Region Meuse-Rhine Region Greater Region |
Shared job-placement offices/one-stop-shops between PES in two or more bordering countries. These shared offices, which often rely on strong co-operation and support from the EURES network, are based on the one-stop-shop approach to ensure that individuals can access one place (in-person or online) where he or she can receive employment and training services that are co-ordinated across the bordering countries. |
|
Greater Region |
Cross Border Labour Market Observatories that support information and data sharing |
|
Upper-Rhine Region Greater Region |
Cross-border apprenticeship programmes |
There are multiple options to further strengthen cross-border co-ordination of employment and skills policies building on insights from other EU cross-border regions
GCR could explore ways to better co-ordinate employment and skills policies to strengthen cross-border labour mobility and inclusion. The following recommendations propose adjustments to the current framework to enhance cross-border policy co-ordination. These are organised into four categories: 1) measures to improve information and data-sharing for PES and jobseekers; 2) joint policy initiatives; 3) joint one-stop-shop facilities: and 4) policy co-ordination and capacity building measures.
Infographic 1.3. Focus area for strengthening the co-ordination of employment and skills policies
Copy link to Infographic 1.3. Focus area for strengthening the co-ordination of employment and skills policies
Source: OECD
Box 1.2. Strengthen the co-ordination of employment and skills policies across borders in the Greater Copenhagen Region (GCR)
Copy link to Box 1.2. Strengthen the co-ordination of employment and skills policies across borders in the Greater Copenhagen Region (GCR)Measures to share information and data for PES and jobseekers
Establish a Cross-border Labour Market Observatory (CBLMO): Key stakeholders in GCR, such as Greater Copenhagen and its members, supported by national Public Employment Services (PES), could establish a CBLMO to collect, analyse, and disseminate labour market data on employment and skills trends at the macro level. The CBLMO could complement existing analytical efforts and potentially manage the Oresund Database to track long-term labour market trends. Establishing the CBLMO would require a clear mandate and a sustainable resource base, potentially through pooled contributions from multiple stakeholders.
Create a mechanism for regular data exchange between the PES: Arbetsförmedlingen and STAR could establish a mechanism to facilitate the exchange of labour market data, such as job vacancies, jobseeker profiles, and demographic information. Unlike the CBLMO, this mechanism could focus on up-to-date micro-level data to support PES in their daily operations.
Enable cross-border job search through shared job portals: A unified digital job portal could be re-established to support jobseekers in GCR. Current national portals (jobnet.dk in Denmark and platsbanken in Sweden) are limited to national job postings and profiles requiring a national ID and can only be posted in the native language. STAR and Arbetsförmedlingen could enhance these platforms by allowing cross-border job searches and enabling employers to post job ads in Danish, Swedish or English. This initiative could align with the forthcoming EU Talent Pool, an EU matching platform designed for third-country nationals (TCNs).
Integrate work permit requirements into job postings: Job postings on Denmark’s and Sweden’s main job portals could include clear information on work permit requirements, helping TCNs better navigate cross-border employment opportunities in GCR.
Joint policy, training and career guidance programmes
Enhance the strategic use of EURES advisors in local PES offices: EURES advisors in job centres and local PES offices in Denmark and Sweden could more actively integrate cross-border job opportunities into their counselling, matching and job search support services. Drawing on examples from the Meuse-Rhine and Upper Rhin Regions, this approach could better connect jobseekers and employers across the border.
Develop and pilot cross-border re- and upskilling programmes for sectors facing shortages: PES on both sides of the border could lead initiatives to bring together businesses and adult education institutions to design re- and upskilling programmes for adult workers and jobseekers. Active business engagement, particularly through cluster organisations, could ensure the programmes address labour and skills shortages in key industries.
Organise targeted cross-border job fairs and job matching programmes: Building on existing co-operation structures, STAR, Arbetsförmedlingen and regional stakeholders could continue to host cross-border job fairs. Inspired by practices in the Greater Region, Meuse-Rhine and Upper-Rhine Regions, these events could focus on specific sectors and include pre-screening of jobseekers to better align supply with demand. Smaller, more targeted job-matching events could also be organised, enabling one-to-one matches between screened candidates and employers.
Reassess options for cross-border work-placement programmes or on-the-job training programmes: The feasibility of cross-border work placement or on-the-job training programmes (e.g. apprenticeships) could be revisited, drawing on lessons from other EU cross-border regions. The Nordic Freedom of Movement Council, in co-operation with national authorities, could lead this work. Based on the findings, a pilot programme could be developed.
Joint one-stop-shop organisation
Reinforce and expand Oresund Direct's role as the primary cross-border information point and one-stop-shop for cross-border employment services: Oresund Direct plays a critical role as the region’s only cross-border information point, but its funding situation, particularly on the Danish side remains precarious. Furthermore, its current role is primarily informational, limiting its potential impact. The Danish and Swedish Governments could negotiate a bilateral agreement to secure long-term funding and expand Oresund Direct’s mandate to include a regional one-stop-shop for cross-border job placement services, both online and in-person. This agreement could draw on successful models from cross-border placement offices in regions such as the Meuse-Rhine Region and the Upper Rhine Region. The funding model provides resources for additional staff from relevant national agencies to be present at the physical office in Malmö, complementing the agencies already represented.
Policy co-ordination and capacity building
Enhance strategic co-operation between the Danish and Swedish PES: The PES in both countries could strengthen collaboration by signing an agreement to formalise cross-border co-operation. This agreement could define key objectives, themes for collaboration, timeframes, and financial resources.
Develop a joint labour market and skills research programme: Through their involvement in the governance structure of the proposed CBLMO, Danish and Swedish PES could establish a joint research programme to analyse labour market trends and skills development needs in GCR.
Create a mechanism for sharing successful strategies and tools: To enhance operation, the PES in Denmark and Sweden could develop a platform for sharing effective strategies, programmes and tools in areas such as employment support, job matching and training. While not exclusively focused on cross-border workers, these initiatives could contribute to capacity-building and service improvement on both sides of the border.
Recommendations for the implementation of the strategy
Effective implementation of the strategy requires strong ownership, particularly at the national level. While regional and local governments play an important role, in both Denmark and Sweden, their influence over the administrative and legal framework governing TCN cross-border labour mobility is limited. National-level engagement and leadership will therefore be critical to achieving tangible outcomes in both the short and long term. The final set of recommendations provides guidance on how to secure this ownership and support effective implementation.
Infographic 1.4. Focus areas for steps to ensure ownership and implementation of the strategy
Copy link to Infographic 1.4. Focus areas for steps to ensure ownership and implementation of the strategy
Source: OECD.
Box 1.3. Take steps to ensure ownership and implementation of the strategy
Copy link to Box 1.3. Take steps to ensure ownership and implementation of the strategyClarify national responsibilities for TCN cross-border mobility: Denmark and Sweden face institutional uncertainty and a lack of ownership regarding policies on cross-border mobility, including for TCNs. To address this, each country could assign responsibility for facilitating cross-border mobility, including for TCNs, to a national agency or ministry. This body could also serve as a member of a task force for implementing the long-term strategy (see below).
Establish a task force for implementation: Greater Copenhagen, in collaboration with the Capital Region of Denmark and Region Scania, could create a task force to implement the outlined strategy and its recommendations. The task force could include representatives of key regional stakeholders, such as municipalities, local PES offices, Oresund Direct and the Oresund Institute. It could develop a roadmap for implementation and regularly present progress to relevant national ministries and agencies.
Develop a targeted communication strategy: The task force could lead the development of a targeted communication strategy to support the implementation the recommendations. This strategy could draw on the findings of this report and other recent analyses.
Integrate recommendations in the Freedom of Movement Database: The Freedom of Movement Database could be updated with the findings and recommendations of this report.