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JOBS

Norway posts record number of vacant job listings

A record number of openings have been listed on the Norwegian Labour and Welfare Administration’s (NAV) job portal this year.

The job market in Norway is recovering from the pandemic quicker than expected according to Holte. Pictured is two employee's going over some paperwork
The job market in Norway is recovering from the pandemic quicker than expected according to Holte. Pictured is two employee's going over some paperwork. Photo by Gabrielle Henderson on Unsplash

Job vacancies on NAV’s job portal, arbeidsplassen.no. are at record numbers already this year, with two months of 2021 still to go. 

So far this year, around 433,000 jobs have been listed on the portal, surpassing the figure for pre-pandemic 2019. 

“Already now, at the end of September, we have even more vacancies through this year so far than we had throughout 2019,” Hans Christian Holte, director of Nav, told public broadcaster NRK

NAV estimates that by the end of the year, well over 500,000 vacancies will have been registered in 2021. 

Some industries stand out in particular when it comes to the demand for labour. Tourism and catering, daycare, sales and health sciences are all areas with significant demand for workers, according to NAV’s director.

Holte rejected the idea that Norwegians may be too picky about the types of jobs they are willing to take as a partial explanation for the vacancies. He instead said it was about people having the necessary skills. 

READ ALSO: Five essential things to know for anyone working in Norway

In addition, he also said that the job market had recovered from the pandemic much quicker than expected. 

“We see that unemployment, in general, is back to the level it was before the pandemic. We actually expected this to happen next year,” he said. 

One trend concerning Holte is the rise in long-term unemployment in Norway. According to the NAV director, the number of people who have been unemployed for between one-and-a-half to two years has more than doubled since last year. 

“This is perhaps the biggest concern I have right now – there are the many who have been out of work for a long time. Maybe there are special reasons for it, such as gaps in the CV, language challenges, or health-related things. Norwegian society must now be good and help them back into working life,” he explained. 

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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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