Part 8/11:
Challenges Amidst Success: Immigration and Aging Population
Despite its many successes, the Danish model is not without challenges. Rising housing costs, labor shortages, and pressures from immigration are beginning to take a toll on the welfare state. An aging population poses significant threats, demanding higher healthcare expenditures and straining the pension framework.
Moreover, immigration policies are undergoing scrutiny, balancing the need for labor against the necessity of fostering stability in social welfare systems. The Danish government’s approach has involved tighter residency requirements and employment conditions for newcomers while recognizing the role of skilled migration in sustaining economic growth.