Newsletter_Q2_2018_UK

Newsletter Q2 2018

Fierce competition for young talented employees Greater Copenhagen has witnessed a population boom in recent years, which is predicted to continue with some 19% population growth by year 2045. Nevertheless, net migration into Greater Copen- hagen has been negative for the past three years. Many of those choosing to leave Greater Copen- hagen move to northern Zealand, north of Copen- hagen. However, the trend is altogether different for young residents aged 15-29. This age group has seen a sustained net inflow into Copenhagen for the past seven years, partly because of the avail- ability of educational institutions, partly due to the young wishing to remain in the city after gradua- tion. According to a national survey by CA Karri- erepartner, 71% of residents in the Capital Region of Denmark are prepared to stay and work in the region, and young residents of other regions simi- larly point to the Capital Region as their preferred choice, with only their regional place of study ranking higher. Domestic businesses are well aware of this urbanisa- tion trend among the young, and location is there- fore key to attracting candidates from the pool of young talents. More than 290 businesses moved to Greater Copenhagen in 2017, in particular from

neighbouring municipalities, e.g. Greve, Køge and Roskilde. But 25 businesses in fact moved from Aarhus to Greater Copenhagen. Most recently, consultancy firm Valcon decided to relocate from Hørsholm north of Copenhagen to the Copenhagen city centre, citing as reason its past difficulties in attracting new staff and its wish to be closer to its clients. However, although some busi- nesses clearly prioritise a central Copenhagen loca- tion, Greater Copenhagen has seen a slight net outflow of businesses since 2010. Several businesses have moved sales and service functions to the cities, while either retaining produc- tion facilities in out-of-town locations or outsourcing them. This trend is expected to continue as Copen- hagen is perceived as Denmark’s growth centre due to its strategic location in the Nordics and interna- tional business approach. Mounting international attention has made an increasing number of interna- tional companies set up business in Greater Copen- hagen, first and foremost in the district of Ørestad due to its short proximity to Copenhagen Airport. Short-distance relocations most prevalent in central Copenhagen An analysis of Copenhagen moving patterns reveals that most relocations take place over a short distance, with expansive businesses relocating

Number of relocations has quadrupled in Greater Copenhagen

Number

Index

112

4,000

110

3,500

108

3,000

106

2,500

104

102

2,000

100

1,500

98

1,000

96

94

500

10

11

12

13

14

15

16

17

Relocations Gt. Copenhagen, no.

GDP growth, fixed prices

Sources: Statistics Denmark and virk.dk

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