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Working in Norway: A weekly roundup of the latest jobs news and talking points

Find out all the latest information related to jobs in Norway with The Local's weekly roundup of relevant news. And take part in this week's readers' poll.

Working in Norway: A weekly roundup of the latest jobs news and talking points
This is what changed in the job market in Norway. Photo by Scott Graham on Unsplash

Drop in unemployment in Norway in July

Monthly figures from the Norwegian Labour and Welfare Administration (NAV) have revealed that the number of job seekers in Norway fell to just shy of 150,000. 

Overall, unemployment fell by 5,500 compared to June when adjusted for seasonal variations.

According to NAV, the drop in the number of job seekers in July is due to the easing of pandemic restrictions. 

“The decline in the number of jobseekers continued in July, in line with the softening of infection control measures,” Director of Labour and Welfare at NAV, Hans Christian Holte, said in a statement

Around 3.5 percent of Norway’s workforce is currently unemployed. 

READ ALSO: Nine tips for finding a job in Norway

The industries that saw the most significant reductions in unemployment were the travel and tourism sectors, and the area to receive the biggest boost in employment in July was Oslo. 

Live events industry suffering shortages following mass exodus 

As a result of the coronavirus pandemic, almost one-fifth of all stage technicians in Norway have left the industry since March 2020. 

Now those in still working in the sector are worried that should Norway lift all measures, live events would face a massive shortage of technicians.

Figures from the Industry Association for Stage Production (BFSP) revealed that 19.4 of all permanent employees had left the industry since March last year. 

“I think everyone in the industry lost their spark during the lockdown. It is difficult to go without work for such long periods,” Morten Buvik, general manager of the Sound Team in Bodø, Northern Norway, told trade union newspaper Klassekampen.

Top Norwegian firm offering letters of recommendations to unsuccessful applicants 

One of Norway’s most prestigious firms is offering some applicants who get to the final round of the interview process, but aren’t selected, letters of recommendation to help them in their job hunt. 

Norges Bank Investment Management, which handles Norway’s oil fund or, Government Pension Fund, will offer applicants who make it to the final interview stage of its graduate scheme letters of recommendation to help them in their job hunt.  

Nicolai Tangen, CEO of Norges Bank Investment Management, has said the move was inspired by a zoo in Kristiansand, Southern Norway, which offers all applicants who didn’t make the final cut a letter of recommendation to help them in the job-hunting process. 

In a post on LinkedIn, Tangen said that he hoped this would help empower young job seekers.

Norway’s sixth richest man says wealth tax will put companies off employing more people

Salmon baron and Norway’s sixth richest man, Gustav Witzøe, has warned against a wealth tax proposed under a potential red-green coalition.

Witzøe, the owner of Salmar, one of the worlds largest salmon breeders, has said that the proposed tax will put wealthy owners off from expanding their companies workforces. 

“It depletes the company of resources- which prevents you from preserving jobs or developing new ones. It does not make sense,” he told financial site E24.

The proposal from Norway’s red and green parties would see ultra wealthy individuals subject to much higher taxes than they currently are.

Witzøe said that this tax would also put Norway at a disadvantage on the world stage and said he would consider moving his company’s head offices to London or Cyprus, where taxes are lower. 

Readers’ Poll

Should foreign workers in Norway join a union?

Take a few seconds to share your views with our readers. We’ll publish the results in next week’s round up of jobs news.

More than half of workplaces inspected in Norway are in breach of the Working Environment Act 

More than half of the 5,000 workplaces union LO have inspected this summer have revealed a breach of the Working Environment Act. 

This summer, 58 percent of all premises inspected have been found to be breaking employment rules. 

The reason for this, according to the union, is due to the Covid-19 epidemic in Norway. 

“A year with many unemployed and laid-off people can probably lead to many accepting worse working conditions than they are entitled to, Bjarne Lagesen” from LO told online news site Nettavisen.

Young people, particularly, have fallen prey to shoddy work practices. Every sixth summer employee under the age of 18 is working without a contract. In addition, the union has seen an increase in the number of employers monitoring employees with cameras with workers permission.

Did you know?

Norway doesn’t actually have a national minimum wage. But that does not mean your employer can get away with paying you whatever they want.

While wages in Norway are respectable, people who have recently moved to the country may be surprised to learn that there is no official general minimum wage.

Instead, wages tend to be agreed though negotiations between trade unions and individual employers or employer organisations (tariffavtale). In Norway, a country of about 5 million people, 1.4 million workers were covered by a tariff agreement in 2015, according to data from Statistics Norway.

In addition, the tariff agreement also regulates working hours, overtime, holidays, pensions and rules regarding temporary layoffs.

For more on this read: Why Norway doesn’t have a national minimum wage and how fair pay is ensured

Useful links

Below you’ll find a couple of useful articles, guides and resources put together by The Local which cover key aspects of working life in Norway. 

What are the perks of working in Norway?

Five things foreigners should know about income tax in Norway

Is this useful?

Please get in touch with me at [email protected] to let me know if this weekly feature is useful and any suggestions you have for jobs related articles on The Local Norway.

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WORKING IN NORWAY

Five things to know about wages in Norway

Norway is a great country to live and work in, and many point to the high salaries as a major pull factor. Here’s what you need to know about the wages in Norway. 

Five things to know about wages in Norway

Norway doesn’t have a minimum wage 

Many wrongly assume that the high wages in Norway must be the result of a high minimum wage. 

However, the country doesn’t have a minimum wage which covers all sectors. Instead, wages are agreed upon through negotiations between trade unions and individual employers or employer organisations. 

This contributes to high levels of trade union membership in Norway. 

Those who aren’t in a union or sectors where membership isn’t widespread negotiate their own wages. 

Some industries, where workers are likely to be exploited or where there may be a large number of foreign workers, have minimum wages enforced by the Norwegian Labour Inspection Authority.

READ MORE: Which industries in Norway have a minimum wage?

How Norwegian wages compare 

The average salary in Norway (more on that later) was 56,360 kroner per month in 2023. 

This equates to an annual salary of around 676,000 kroner. This is a salary equivalent to 49,000 pounds, 57,510 euros, or 61,266 dollars. 

The average annual salary in the US is 59,428, according to Forbes magazine.  Eurostat, the official statistics office of the European Union, measured the average annual salary for a single worker without children at 26,136 euros and 55,573 euros for a working couple with two children. 

However, wages vary greatly across the EU. In 2022, the net annual earnings of an average single worker without children were 47,640 euros in Luxembourg compared to 8,412 euros in Bulgaria

Meanwhile, the average Dane earns 46,972 Danish kroner before taxes, according to Statistics Denmark. This is around 73,981 Norwegian kroner. In Sweden, the average salary was around 38,300 Swedish krona or roughly 38,534 Norwegian kroner

Average wage versus median wage 

The average monthly wage of 56,360 kroner is pulled up by the very highest earners. The highest earners in Norway are found in the private sector. 

Statistics Norway used to keep data on the very highest earners, and around 41,600 people were in the top one percent in 2021 (the year Statistics Norway last kept data) 

To be in Norway’s top one percent required annual earnings of 1.8 million kroner or 150,000 kroner monthly

The median wage is a far more modest 50,660 kroner. 

Income tax 

Norway uses a mixture of progressive and flat taxation. The majority of wage earners in Norway, they will pay a flat income tax of 22 per cent, along with a bracketed tax based on earnings. 

The bracket tax ranges between 1.7 and 17.5 percent, depending on one’s earnings. This means that you can have income tax of up to 39.5 percent in Norway. 

Foreigner workers who are new to Norway will be sorted into the PAYE schemeThis is a flat tax rate of 25 percent, however there are no deductibles available. After a year, they will be sorted into Norway’s regular tax system. 

Norway’s gender and immigrant wage gap 

Foreigners in Norway typically make less money than their Norwegian counterparts. The average salary for a foreign resident in Norway is around 50,270 kroner per month, according to figures from the national data agency Statistics Norway.

Furthermore, when you take immigrants out of the wage statistics, the average wage rises to 58,190 kroner. 

The highest earners amongst foreigners in Norway were those  from North America and Oceania. They made 61,810 kroner on average. 

Africans, and those from countries that joined the EU after 2004, had the lowest earnings among all immigrant groups in Norway. 

While women’s wages increased more than men’s last year, a gender wage gap still exists in Norway. An average woman’s salary amounted to 88.3 percent of a man’s monthly pay packet.

bigger gap existed between Norwegian men and foreign women. 

READ ALSO: How much money do Norway’s different foreigners make?

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