In modern Denmark, the economic sectors of agriculture and industry are so closely linked that it is difficult to separate their influences. Both food and wood-based industries such as paper depend heavily on agriculture for raw materials while using sophisticated technology to process them. In addition, agricultural production itself is quite technologically advanced. The agricultural sector's highly technical nature means that its great productivity is generated by a small fraction of the total workforce—4 percent in 2000. In contrast, well over two-thirds of the workforce was employed in the service sector in the same year.
Agriculture in Denmark also includes forestry and fishing. The agricultural industry was Denmark's first engine of growth, especially its livestock production and forestry industry. Agriculture's economic influence relative to other sectors has basically been declining; by the
The lack of raw materials other than agriculture (until the discovery of oil and natural gas in the 1960s), meant Denmark's industries developed as secondary production and processing concerns, usually specializing in
In 2000, Denmark's services sector contributed more than two-thirds of GDP. Private services accounted for around two-thirds of productivity, and public services the remaining one-third. However, many private services are in fact subcontracted to public institutions. The majority of public services are in health, welfare, and administration. In the service sector as a whole, business services and wholesale/ retail trade accounted for the most productivity growth. Wholesale and retail trade is the largest employer in private services, in 1997 accounting for a little over half of service sector employment. Between 1992 and 1998, the service sector saw a 12 percent increase in employment. Public services have consistently accounted for nearly one-third of employment in services (mostly in health and education) over the past decade, while telecommunications and business services have slowly increased their share of employment.