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Danish employment growth has generally been concentrated in large city-regions in recent decades and peripheral regions have suffered from de-industrialization and employment loss. Yet, little is known about the development of towns outside the city-regions, nor of the smaller towns within them. The presentation highlights recent findings of the employment growth in Danish towns and regions with a focus on industrial structure, location and human capital before and after the financial crisis in 2008. The analysis reveals four main conclusions. First, town size matters, as the larger a town is, the better it performed. Second, the greater the industrial diversity, the less towns were affected by the crisis. Third, towns dominated by either construction and manufacturing or specific service industries were hit hardest by the crisis. Fourth, the regional locations of towns and their proximity to a larger town or city are important for employment growth.