Greenland’s economic future relies on finding workers

At the Arctic Circle Conference in Reykjavík, Christian Keldsen, Director of the Greenland Business Association, discussed with Arctic Today the critical labor force challenges Greenland faces, which include the country’s growing dependence on foreign workers and the need for government action to sustain economic growth. Greenland’s small population, with just 56,000 people, struggles to meet the demand for both skilled and unskilled labor, which has led to an increasing reliance on imported workers.

Keldsen explained that while Greenland has traditionally relied on specialists from Denmark, there has been a noticeable shift in recent years, with more unskilled laborers arriving from countries in Asia. These workers are taking up roles in sectors such as fisheries, retail, and hospitality, which were previously filled by local or European labor.

“The biggest change we’ve seen in the past 20 years is the type of expat coming in and the type of jobs they come in for. Usually, we would only import people for skilled jobs. Now they’re coming in for unskilled jobs,” Keldsen said.

Despite the influx of foreign workers, Keldsen says that Greenland’s labor market is still under strain, and he criticized the local government for its inaction in addressing the situation. He stressed that the government has been slow to recognize the full extent of Greenland’s workforce challenges, particularly its reliance on foreign labor.

“The government’s not doing enough because we’re not realizing what the problem is. We still sort of hang on to the fact that there are 2,000 people not working who could be working, but we don’t know where they are,” Keldsen said.

Looking ahead, Keldsen warned that Greenland’s population is projected to shrink to around 40,000 by 2050, which will further strain the labor market. He claims the foreign labor is vital to Greenland’s economic future, noting that without it, the country’s growth could stall.

“We are going to be lacking a workforce for the foreseeable future, and it’s only going to get worse with the current projections. That’s why we need to import labor in the short term,” he said.

Keldsen claims there are potential solutions, such as creating clearer strategies around which jobs Greenlanders should be trained for and which should be filled by foreign workers. He says Greenland’s education system must focus on the country’s labor market needs, while also addressing social issues that impact workforce readiness.

“We need to have a discussion in Greenland about what jobs we want to keep for Greenlanders and what jobs we want to import the workforce for,” he said.

Keldsen is concerned about the challenges of retaining young Greenlanders who leave the country for education abroad, often choosing not to return home. He pointed out that while other small Arctic nations like Iceland and the Faroe Islands manage to attract their citizens back, Greenland struggles in this area due to the lack of housing, social infrastructure, and other amenities that young people seek.

Keldsen claims that the Greenlandic government needs to recognize the country’s dependence on foreign labor and take immediate steps to address the workforce shortage before it becomes an even more pressing issue.

“We are an economy in growth, but it’s not going to continue to grow if we can’t get the people. It’s the most important resource, and I want the government to see that and acknowledge that,” Keldsen said.