Bridging the Digital Talent Gap

PropTech insights
Written By Stine Grønnegaard

As businesses increasingly embrace digital transformation, the demand for skilled digital talent is rising at an unprecedented rate. Denmark is no exception. While the global digital pool is limited, the talent pool becomes even more scarce when viewed through a Danish lens. With digitalisation becoming essential for competitiveness, how can Denmark bridge its growing digital talent gap to secure the people and skills needed to stay ahead?

The Digital Talent Challenge

The European Union’s 2030 Digital Compass Plan aims to tackle the digital skills shortage. The overall goal is to train 20 million ICT (Information and Communication Technology) specialists and ensure that 80% of adults within the EU possess basic digital skills by 2030. However, despite these efforts, all countries, including Denmark, are projected to face a significant shortfall of digital talent. 

Insights from the recent launch of Digital Hub Denmark's newest report, presented by Denmark’s newly appointed Minister for Digital Affairs, Caroline Stage Olsen, indicate an expected shortage by as many as 50,000 digital specialists by 2030. This shortage poses a critical challenge for businesses and the economy at large.

Success in overcoming this shortage will depend on upskilling existing employees, implementing a digital strategy, and building Denmark's attractiveness as a destination for digital talent. However, it's not enough to simply attract talent; retaining them is equally crucial. We’re not quite there yet. Data from the Digital Hub Denmark report shows that in 2023, while Denmark attracted 2,400 digital talents, it lost 1,850, resulting in a net gain of just 550 professionals. How can we improve this number?

The Digital Talent Pool in Denmark

Digital Hub Denmark’s new report also sheds light on the current state of digital talent in Denmark. Currently, the country employs around 215,000 digital professionals, a 22% increase since 2021. 

  • Digital specialists (for instance developers, data engineers, software engineers, CTOs) account for 47% of the total pool, or 101,000 professionals.

  • Digital integrators (for instance business developers, product designers, mechanical engineers, key account managers) make up the remaining 53%, or 114,000 professionals.

15% of Denmark’s digital talent pool consists of international talent, which emphasises our reliance on global recruitment. Yet, with a notable attrition rate, attracting foreign talent alone will not solve the problem.

Cross-Sectoral Talent Shortage

Denmark’s shortage of digital talent is not confined to any specific industry. Digital skills are becoming indispensable across all sectors, particularly as innovation, green transition, and digitisation become central to future growth. Across industries there is a common theme: the lack of digital expertise poses a major barrier to growth and innovation. Shortage of qualified talent is also highlighted in the Danish PropTech Report 2024, underscoring the challenges the real estate sector faces in recruiting digitally skilled professionals. 

Collaboration is key

Bridging Denmark’s digital talent gap will require collaboration across government, education, and industry. Continued investment in upskilling the local workforce & continuing to create attractive workspaces, coupled with efforts to attract and retain international talent, is essential. Denmark’s success in this endeavour will ensure that businesses across the country remain competitive, innovative, and at the forefront of the global digital revolution.

Addressing the digital talent shortage is not a challenge unique to Denmark, but a critical one that must be faced head-on in an increasingly digital world. The solutions could lie in building a robust talent pipeline, fostering an inclusive digital culture, and branding Denmark as a leader in digital innovation with collaborative efforts.

Sources:

Stine Grønnegaard
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