It is no problem for the fishing sector in Greenland to recruit skilled personnel, but it has problems recruiting unskilled labour for fish factories. (Photos: iStock)
5. GREENLAND
The labour market in Greenland
As is the case elsewhere, demographic developments mean Greenland is confronted by a situation in which the number of elderly people is increasing alongside a declining workforce. This is exacerbated by the fact that there is already a shortage of qualified labour in a society where unemployment rates are very low.
Greenland is categorised as a fishing nation. Looking at the sectors where most people are employed, care and welfare services ranks highest, just above the fishing sector (see Table 5.1).
Bolethe Hammeken
Special advisor, Ministry of Labour, Government of Greenland
Special advisor, Ministry of Labour, Government of Greenland
Care and welfare services | 17.6% | Administrative services and support services | 1.50% | |
Fishing and fishing industry | 16.00% | Leisure, culture and religion | 1.20% | |
Wholesale and retail trade | 11.10% | Liberal, scientific and technical services | 1.10% | |
Education | 8.90% | Other service industries | 1.10% | |
Building and construction business | 8.30% | Real estate | 1.00% | |
Transport and cargo handling | 7.20% | Environmental protection | 0.90% | |
The health service | 6.10% | Bank and financial company | 0.80% | |
General public services | 4.80% | Manufacturing business | 0.80% | |
Accommodation and restaurant business | 2.80% | Agriculture, forestry and agriculture-related industry and trade | 0.40% | |
Undisclosed | 2.50% | Raw material extraction | 0.40% | |
Information and communication | 2.20% | Public order and security | 0.10% | |
Economic affairs | 2.10% | Housing and public facilities | 0.10% | |
Energy and water supply | 1.60% | Defence | 0.00% |
Source: Dataset from Statistics Greenland, 2023, [OFDOA1] and [ARDBFB01]
Note: Employment in the public sector is divided into sub-categories to provide a better understanding of employment levels in the various professional areas.
Table 5.1. Labour force by industry
(percentage of total).
(percentage of total).
Closer analysis of the care and welfare services category reveals that care workers with a short-term education constitute 32.8% (childcare workers, pedagogic assistants and hourly paid workers) of all public employees, while teachers and pedagogues make up 14.2%.
Greenland’s cities have municipal and self-governed day-care facilities, which means, that all cities have daycare facilities, but not all small villages have a day-care facility), as well as care and support for the elderly (all cities have care facilities for the elderly involving three work shifts, meaning there are a lot of employees). In total, the care professions (defined as social protection) employ 4,660 people per year. Each city has a health centre, together accounting for up to 1,650 employees per year nationwide. Smaller groups of three persons are employed at dental clinics, although there are additional employees in larger cities.
Meanwhile, the health service sector – which is categorised separately from care and welfare services – accounts for 6.1% of Greenland’s total employment, and 17,6 % of its public employees. The labour falling into this category are a somewhat varied group, consisting of unskilled and short-term educated (6%); healthcare assistants (2.6 %); bioanalysts, physiotherapists, occupational therapists and midwives (1.2%); and doctors and psychologists (1.8%), nurses etc. (5.8) and medical secretary interns, meret healthcare assistants (0,2%). (Public employees by sector, collective agreement groups (2015-2023) dataset [OFEOA5] from Statistics Greenland 2023).
The vital parts of the Greenlandic society function along the coast, where several quasi-public companies with large numbers of employees are based. Among them are the energy service company Nukissiorfiit and telecommunications company Tusass, each of which have a presence in every Greenland town and employ approximately 400 people nationally. Fish company Royal Greenland employs approximately 1,390 of the 4,355 people working in the fishing sector (although almost all towns have a fish factory, in some places they only operate seasonally), while Royal Arctic Line, a seaborne freight company – again present in all cities – employs up to 750 people on average per year.
In the wholesale and retail trade businesses , there are 3 larger chains. And these are: Pisiffik A/S and KNI A/S (Pilersuisoq and Polaroil) and Kalaallit Nunaanni Brugseni.
Pisiffik A/S was sold from KNI A/S in the year 1993 and now operated under normal competitive conditions. The owners are KFI Figros ApS (33.00-49.99%), Norgesgruppen Danmark Aps (33.00-49-99%) and Nalik Ventures A/S (10-14.99%). Pisiffik A/S operates the store chains Pisiffik, SPAR, AKIKI, Torrak Fashion, JYSK, ILVA, PISATTAT, SUKU, ELGIGANTEN, Notabene (located in the cities of Qaqortoq, Nuuk, Maniitsoq, Aasiaat and Ilulissat) as well as the webshop Pisiffik.gl and the restaurants Sunset Boulevard in Nuuk and Ilulissat. Pisiffik A/S employs 807 at the end of 2023 in total.
KNI A/S is primarily in 2 parts: The store chain Pilersuisoq and Polaroil, which handles gas oil, petrol, kerosene and jet fuel in Greenland. KNI A/S is 100% owned The Self-Government of Greenland employs 838 full-time employees at the end of 2023.
Kalaallit Nunaanni Brugseni is 100% owned by Greenlandic members and includes 17 stores distributed as follows: 1, in Ilulissat, 3 in Sisimiut, 2 in Maniitsoq, 6 in Nuuk, 1 in Paamiut, 1 in Narsaq, 2 in Qaqortoq and 1 in Nanortalik . Kalaallit Nunaanni Brugseni employs 583 at the end of 2023.
In addition to the above, there are various small companies in the construction, hotel, restaurant and tourism sectors. Although labour figures in these sectors have remained relatively stable over the long term, they all face high staff turnover.
Regional and national variations in Greenland’s labour shortages
In the past, there was thicker, more stable sea ice, which allowed people to predict with relative accuracy how long it would last and so assess its likely impact on business life. In north Greenland, for example, fishing could be done sustainably on the ice, regulated by nature, while quotas were imposed on the catching of marine mammals, which is regulated regarding on which types of mammals that could be caught and the number that could be caught pr. type.
More recently, however, reduced sea ice cover has greatly diminished the potential for fishing and catching (DMI et al. 2020), and stricter quotas have been introduced. These quotas determine when a low season is declared: in other words, when the quota is met, the low season begins. Overall, changes in climate have had significant impacts on both fishermen and the country as a whole, pointing to the need for structural transformation. The government would like to see businesses become more multi-faceted in order to reduce their dependency on the fishing sector – at present, when things go badly for fishing, Greenland’s other sectors are all negatively impacted.
While fishing is well developed on Greenland’s west coast, the industry lags far behind on the east coast, despite – ultimately unsuccessful – initiatives aimed at developing the sector. In particular, Tasiilaq, located on the east coast, suffers from high unemployment rates. As Figure 5.1 demonstrates, unemployment rates in Greenlandic towns remained fairly stable over the four quarters of 2023, with variations mostly linked to seasonal changes in the ice cap.
Figure 5.1. Quarterly overview of registered jobseekers.
Source: Prepared from three datasets from Statistics Greenland, 2023 (‘Registered jobseekers in cities’ divided by ‘Population distributed in cities’ minus ‘Early retirees distributed in cities’).
Source: Prepared from three datasets from Statistics Greenland, 2023 (‘Registered jobseekers in cities’ divided by ‘Population distributed in cities’ minus ‘Early retirees distributed in cities’).
There are also regional differences in the procurement of fish. In north and west Greenland, there is considerable activity on land in terms of fish processing, which is not the case for south Greenland. Moreover, fishing-related activities in west Greenland take place on a more ongoing basis throughout the year compared to north Greenland, where – due to diminished sea ice and quota limits – the fishing sector is constrained by a low season.
Regarding tourism, several local players have emerged in recent years and, given Greenland’s ongoing airport projects, it is anticipated that rising numbers of tourists will visit the country. The tourism industry – which has long been a potential source of income – now appears to be the subject of increased activity, with a particular focus on making the profession a more year-round activity. Currently, Ilulissat is the only city that can be characterised as a year-round tourism destination. The government is in the process of preparing a long-term tourism strategy that is to be applied from 2025 onwards.
Education and skills in Greenland’s labour markets
Analysis of education levels in Greenland’s largest sectors indicates vocational training and enhanced competence via education is needed in both the public and private sector (see Figure 2). Across both the fishing sector and the retail trade, employees have vastly different educational backgrounds depending on their function and professional area. In the fisheries sector, there are technically skilled naval officers, sailors and laboratory technicians, as well as largely unskilled factory workers. The same trend is apparent in retail businesses, which feature unskilled service employees alongside office and logistics unit workers with vocational educations.
The relatively high proportion of unskilled workers in Greenland’s top three sectors – care and welfare, fishing sector, wholesale and retail trade – means these sectors wield considerable influence when it comes to the overall educational profile of the country’s workforce. Currently, the fishing sector provides Greenland’s only successful export activity.
Figure 5.2. Education levels in selected sectors. Source: Dataset from Greenland Statistics, [OFDOA], [ARDBFB08] and [OFDUKN1]
Recruitment problems: Unskilled labour, education and labour migration
Looking at the registered job postings on Greenland’s national job-matching platform, it appears that the fishing sector has no difficulty recruiting skilled personnel but faces problems when trying to recruit unskilled labour for fish factories.
Greenland’s national job matching service platform can be accessed at: www.suli.gl.
Conversely, there is decreasing demand for unskilled labour in the building and construction sector, while skilled labour is in short supply. This has led to outside labour being called in. Even so, labour shortages remain, with businesses in the sector often refusing to take on new tasks simply because a lack of skilled personnel means they cannot guarantee projects will be completed on time.
Other sectors are also engaged in ongoing recruitment processes, reflective of a widespread demand for labour across the economy. Nevertheless, it takes some time for potential recruits to complete their education, and it is not unusual for someone to take a break from their studies while a student. As such, exploring ways of young people completing their education in a shorter period of time represents an urgent area of focus.
A key consequence of these recruitment problems is increasing demand for imported labour. While the local population still constitutes a large proportion of the workforce, there are a growing number of labour migrants, alongside a significant number of vacant positions that need to be fulfilled (see Figure 5.3).
Figure 5.3. Employment rate (number and nationality) divided by industry.
Source: Dataset from Greenland Statistics, 2023, [ARDBFB07]
Source: Dataset from Greenland Statistics, 2023, [ARDBFB07]
Strategies and initiatives to address Greenland’s labour shortages
Several public initiatives and reforms aimed at overcoming Greenland’s labour market problems are currently ongoing or in the pipeline.
Governmental growth and sustainability plan
The Greenland government’s ‘Political Economic Report 2023’ , Politisk-Økonomisk Beretning 2023 states that the government has initiated the following four reform tracks, the first two of which directly relate to education and labour market upskilling:
- Track 1: Increase education and skills levels
(Value: All kinds of education and employment are important. Education offers should be targeted at society’s needs); - Track 2: Work towards sustainable growth and a transition to a more comprehensive economy
(Value: The public sector’s task is to create the framework for business life); - Track 3: Future-proof the public sector
(Value: The public sector is adapted to the population and the country’s economy. Public service levels for different residence types should be defined and optimised); and - Track 4: Reform the tax system and welfare benefits related to housing and the elderly
(Value: Everyone is part of the community and contributes what they can).
Track 1 is pragmatically oriented, with a focus on ensuring a clearer division of labour when it comes to greenlandic authorities providing guidance on increasing education and competence levels. More specifically, its objectives are:
- Increase the share of the country’s potential domestic workforce to 57% by 2030 (from 54.2% in 2021);
- Increase the proportion of those starting secondary education within two years of finishing primary school to 46% by 2030 (from 39.57% in 2021);
- Increase the proportion of those starting a later education course within two years of leaving upper secondary education to 46% by 2030 (from 37.7% in 2021);
- Increase the proportion of young people completing a programme in the standard time plus two years to 56% by 2030 (from 49.5% in assessment year 2022); and
- By 2030, no young person should be unable to undertake a vocational training course due to a lack of internships.
The changes in organisation and prioritisation implied by these objectives include:
- A structurally clear division of responsibility should be drawn up denoting who is to take the lead on of each of the guidance initiatives and policies.
- An individual’s action plan at job- guidance and upskilling centres must follow that person, thereby ensuring the authority responsible for guiding them has access to it. This must be enacted both systemically and via legislation.
- Notices and instructions should be issued stipulating parameters for how guidelines are to be drawn up, as well as who has responsibility for providing guidance in a particular area.
- The overall starting point for guidance must be clear: young people must, as far as possible, either be in work or education. Failing that, individual young people should have access to and participate in targeted initiatives conducive to their subsequently entering the labour market or undertaking education.
- The national guidance strategy and the work related to it should provide an in-depth description of the effort’s goals and methods, as well as support for putting these into practice.
Reform track 2 is concerned with sustainable growth and transitioning to a more comprehensive economy. As far as Greenland’s workforce is concerned, the supply of labour is to be increased in several ways, with initiatives encompassing attracting external labour; better recruitment of Greenlanders from other countries; the upskilling of unskilled labour; reassessment of those taking early retirement; and promoting an inclusive labour market regarding disabled people.
The specific goals of track 2 are:
- 10% fewer people in the age range 30–50 years on social benefits and instead in ordinary employment, phased in at one percentage point per year over the period 2025–2034;
- 10% fewer people in the age range 30–50 years taking early retirement and instead in ordinary employment, phased in at one percentage point per year over the period 2025–2034; and
- Increased immigration into Greenland over the period 2025–2030.
Public structure for guidance, upskilling and training
Greenland’s Department of Social Affairs, Families, Labour Market and Home Affairs has developed a strategy in which the existing structure of guidance, upskilling and training opportunities for job- and action-ready people is outlined (see Figure 5.4).
Figure 5.4. Greenland’s existing structure for those in the workforce who are job- or action-ready. Source: Department of Social Affairs, Families, Labour Market and Home Affairs, 2023.
As Figure 5.4 implies, there are, of course, students who move onto their post-primary school education without any problems. There are, however, others who need to be guided towards formal education or a job. With this in mind, Majoriaq Centres, established to assist people into a job and/or education, are located in every town. The Greenland government maintains close, ongoing dialogue with the Majoriaq centres, working together to ensure citizens, vocational schools and companies all participate in the pursuit of common goals. When it comes to minimising dropouts, it is the responsibility of school/college tutors to support students who are having a tough time.
Competence development and skills training
Both unemployed and employed labour can access upskilling opportunities through PKU (Projekt Kompetenceudvikling for Ufaglærte) and AMA (Kurser finansieret af ArbejdsMarkedsAfgift) courses (see figures 2 and 4). PKU courses are cost-neutral, with participants – primarily unskilled workers, whether employed or unemployed – able to join for free. AMA courses, meanwhile, are a subsidy scheme financed by the labour market tax, allowing employed and unemployed skilled workers to upgrade their qualifications. Both AMA and PKU courses are business-oriented, with most vocational schools offering both options.
Unskilled workers, who have been in the same job in many years have real competences. Recognition of competences is important to prevent that social and healthcare workers to seeks other opportunities for career. The social care and healthcare sectors provides several courses with credit-bearing certificates for healthcare assistants; assistants within social psychiatry; dental clinic assistants; translators in the healthcare sector; and social workers. These initiatives, which aim at both workforce retention and skills improvement, are in line with the Greenland government’s coalition agreement regarding improving the country’s social and health care sector. While ideally it would be good to expand the range of such courses credit-bearing certificates, capacity is currently at 100% and it is no easy task to source external teachers in the healthcare field.
Turning to other sectors, attempts have been made to run short courses providing workers with technical skills. It is difficult, however, to induce people in ordinary employment to undertake upskilling courses once they have started earning good money. As such, the relevant schemes are currently designed to target those yet to enter the job market. The Arctic construction worker training course, for example, is aimed at former course participants or relevant individuals willing to take a course, and is based around four ‘directions’ that open the door to further education:
- Formwork workers can study building construction
- Roofing workers can study construction coordination
- Tile and wet room workers can study bricklaying; and
- Demolition workers can go on to construction management training.
In addition, Greenland's vocational schools offer short courses on a number of topics. Efforts have been made to encourage course participants to seek for opportunities of jobs or pursue education in the field of work they are most inspired by.
Regarding the fishing sector, requirements are to be eased for fishermen wishing to participate in courses during the low season, thereby enabling them to try another area of work without negatively impacting their existing profession. By making it easier to apply for skills improvement courses, it is hoped that more people will be motivated to change professions or undertake longer-term education.
4. Concluding remarks
There is no specific professional experts in every town. However, at a national level, the need for competence has been met through greater use of traveling teams. This is already evident in synoptics; the social sector and psychiatry; the trades; the health service; telecommunications; and legal administration. Moreover, the government’s growth and sustainability plan highlights strengthening telemedicine as a means of optimising local capacity.
Meanwhile, several larger-scale projects as building of airports in Ilulissat, Nuuk and Qaqortoq, also building af a new public school to 1200 pupils in Nuuk are in their final phase: the construction sector has made the airports it was tasked with building, while the service sector – encompassing accommodation and food services – have been busy creating frameworks aimed at increasing costumer capacity, which naturally with new international airports will increase the level of their business activities significantly.
The Greenland government’s employment strategy consists of three ‘action tracks’:
- Self-sustaining labour markets;
- Lower youth unemployment; and
- Guidance and upskilling.
While efforts have been made to strengthen the workforce under these main themes, the employment strategy cannot stand alone. Rather, a holistic understanding of the challenges faced by society are crucial. This calls for a concerted breaking down of silos, with the aim of facilitating collaboration across departments, organisations and municipalities.
References
Data about the number of workers from annual reports by companies: https://datacvr.virk.dk
Government of Greenland. ‘Naalakkersuisuts beskæftigelsesstrategi 2020–2023: Innovation Potentiale Kompetence’ [Government of Greenland’s Employment Strategy 2020–2023: Innovation, Potential, Competence]. https://imak.gl/wp-content/uploads/2022/03/Innovation_Potentiale_Kompetence__2020-2023_.pdf.
Government of Greenland. ‘Naalakkersuisuts arbejdsmarkedsredegørelse 2022’ [Government of Greenland’s Labour Market Report 2022].
https://naalakkersuisut.gl > Publikationer > År: 2023 > Arbejdsmarked > Type: Redegørelser
Government for Greenland. Politisk Økonomisk Beretning 2023:
https://naalakkersuisut.gl > Publikationer > År: 2023 > Finans > Remove tick marks except Politisk Økonomisk Beretning
Government of Greenland. ‘Naalakkersuisuts Holdbarheds- og Vækstplan 2’ [Government of Greenland’s Sustainability and Growth Plan 2].
https://naalakkersuisut.gl > Publikationer > År = 2023, Emne = Finans, Type = Strategier
Grønlands Erhverv (Greenland Business Association). https://sulisitsisut.gl/en.
Polar Portal. ‘Viden om havisen i Arktis’. http://polarportal.dk/havis-og-isbjerge/viden-om-havisen-i-arktis/.
Statistics Greenland datasets (2023 data). [OFDOA1] and [ARDBFB01], [OFDOA], [ARDBFB08], [OFDUKN1], [ARDBFB07] are used by the Department of Social Affairs, Families, Labour Market and Domestic Affairs to develop statistical graphs. https://bank.stat.gl.
Suli (2023 data). www.suli.gl.