Denmark's flexible labor market gives it many economic benefits.

"Around 2.9 million residents are in the labor market. The proportion of tertiary degree holders is one of the highest. GDP per hour worked was the 10th highest in 2006 and unemployment at 2.3 percent. Denmark has an advanced telecommunications infrastructure. Denmark has a company tax rate of 25% and a special time limited tax regime for expatriates.

According to World Bank Group, Denmark has the most flexible labor market in Europe; the policy is called flexicurity. It is easy to hire, fire, and find a job. According to rankings by OECD, Denmark has the most free financial markets in EU-15 and also one of the most free product markets, owning to liberalisation in the 1990s.

Denmark's flexible labor market and high education levels, allow it to quickly move product and resources (including human capital) from less productive areas of the economy to more productive areas. The efficient allocation of resources allow Denmark to maintain a high economic growth rate and above average economic stability."