The Greater Copenhagen region is a pioneer in cross-border work and in many ways an example for other cross-border areas to learn from. Encompassing four regions and 85 municipalities in southern Sweden and eastern Denmark, the region has seen substantial economic and labour market integration especially since the opening of the Oresund Bridge in 2000. Today, the region is a vital economic hub in Scandinavia, distinguished by its high employment and low unemployment rates, robust foreign direct investment, world-class education institutions and dynamic business ecosystems, particularly in life science and technology.
Despite these achievements, the region has yet to fully realise its potential. Persistent barriers to cross-border mobility hinder labour market integration and economic growth. As a result, cross-border commuting remains relatively low compared to other major EU cross-border regions. This is particularly true for third-country nationals (TCNs), who face additional obstacles to living and working across the Danish/Swedish border including EU and national legislation governing work and residence permits. Moreover, the region’s overall positive labour market indicators conceal significant disparities, especially on the Swedish side. In particular, the Scania Region (6.6%) and the City of Malmö (6.9%) experience significantly higher unemployment rates compared to the Capital Region of Denmark (2.5%), with TCNs disproportionally affected. These high unemployment rates on the Swedish side stand in stark contrast to the increasing labour and skills shortages observed in the Capital Region of Denmark.
Addressing the barriers to cross-border labour mobility – both for TCNs and the general population – offers an opportunity to mitigate labour and skills shortages and foster economic growth in the region. However, achieving these outcomes requires a comprehensive approach involving both immediate and long-term actions.
This report aims to assist the Greater Copenhagen Region in enhancing its capacity to promote cross-border labour market inclusion It provides a thorough analysis of existing barriers to cross-border mobility, in particular for TCNs where the barriers have a significant impact. It also evaluates current mechanisms for co-ordinating employment and skills policies across Denmark and Sweden, which can enhance labour mobility and inclusion in cross-border labour markets. The report highlights that TCNs in particular encounter unique challenges beyond traditional barriers such as taxation, social security and ID checks. It presents a series of administrative and legislative solutions that could significantly improve TCNs’ cross-border labour market integration through targeted but relatively limited adjustments to regional legislation on work and residence permits. Additionally, the report advocates for stronger co-ordination of employment and skills systems across the two countries, enabling all workers and employers to more effectively navigate the cross-border labour market.
This report is part of the series OECD Reviews on Local Job Creation within the Programme of Work of the OECD Local Employment and Economic Development (LEED) Programme. Created in 1982, the LEED Programme aims to contribute to the creation of more and better jobs for more productive and inclusive economies. It produces guidance to make the implementation of national policies more effective at the local level and to stimulate innovative local practices that can be scaled up. The OECD LEED Directing Committee, which gathers governments of OECD member and non-member countries, oversees the work of the LEED Programme. The LEED Committee approved this report through a written procedure in January 2025.