Labor Shortage from Novo Nordisk Causes Headaches for Danish Companies
Ongoing Hiring of Scientists, Carpenters, and Technicians
Europe's largest company by market capitalization and producer of Wegovy, known as the 'miracle obesity drug,' Novo Nordisk is sweeping up Danish talent, drawing complaints from local companies. Although it has grown into a mega-corporation leading not only Denmark but also the European economy, Denmark is reportedly struggling with unexpected side effects.
Bloomberg recently reported that while Novo Nordisk is injecting tremendous vitality into the Danish economy, other Danish companies are facing difficulties hiring employees. Novo Nordisk's market capitalization stands at 2,560 billion kroner (as of the 17th, approximately 518.5 trillion KRW), ranking first on the European stock market. Denmark's GDP growth rate last year was 2.5%, with about half of that attributed to Novo Nordisk.
In Denmark, with a population of less than 6 million, Novo Nordisk employed about 32,000 people as of September this year. As the business rapidly expands, the number of employees has increased by 75% within three years. As a pharmaceutical company, it hires scientists, but it also continuously recruits a wide range of workers including on-site laborers needed for new factory construction, plumbers, carpenters, maintenance workers, and military personnel.
Because Novo Nordisk is investing over $8 billion (approximately 11.5 trillion KRW) in Denmark to increase production in response to a surge in orders. Novo Nordisk established production facilities in Kalundborg, Denmark, in 1969. Recently, it has been expanding its production facilities in Kalundborg and Hillerød, and is building new production and warehouse facilities in Odense with an investment of $1.2 billion.
Bloomberg conveyed the atmosphere, stating, "In the past, competition for labor occurred within the industry, but now it is between the large multinational Novo Nordisk and other companies." Some companies are relocating production overseas or downsizing. Within Denmark, while other Danish companies in Novo Nordisk’s supply chain benefit, there are also cases where companies cannot secure employees and thus lose work, leading to criticism that this is a 'double-edged sword.'
As the labor shortage issue surfaced, Novo Nordisk is reportedly focusing on securing talent by employing various measures, including paying wages 20% higher than other companies. Novo Nordisk stated that it is continuously communicating with relevant authorities and striving to ensure that the entire Danish life sciences industry can secure the necessary workforce. At the same time, it announced plans to increase its workforce in countries such as China, France, and the United States instead of excessively recruiting within Denmark.
Kristin Tuxen, head of small and medium enterprises at Danske Bank, a Danish bank, pointed out, "It is certainly good to have a strong company, but from a societal perspective, overreliance on one company can increase vulnerability." As Novo Nordisk grows into a global company offering high salaries, welfare, and bonuses, other companies are also expanding benefits paid to their employees accordingly.
Meanwhile, Bloomberg explained that in Denmark, which enforces strict immigration policies, this labor shortage issue has also become a political matter. To address the labor shortage, the Danish government is taking steps to ease restrictions so that foreign workers can access the domestic market, signaling ongoing changes.
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