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Norway’s labour shortage: Which professions are most in need in 2023?

While the shortage of workers in Norway has decreased from 2022 to 2023, the country's economy still needs tens of thousands of workers – especially in some professions.

Worker
According to a new survey, approximately one in four businesses in Norway reported facing difficulties with recruitment, with 26 percent indicating that they had encountered challenges in acquiring labour within the last three months. Photo by Marianna Krzakiewicz on Unsplash

Businesses in Norway are still faced with a shortage of workers. According to the latest survey among companies carried out by the Norwegian Labour and Welfare Administration (NAV), some 53,000 workers are needed.

The shortage is most significant in health and care services, but there are also far too few craft and industrial workers.

“Although the estimated shortage of qualified labour is significantly lower this year, it is still very high. With the exception of 2022 and 2019, we have to go back to 2008 to find a higher level,” NAV chief Hans Christian Holte said on Monday.

The shortage of workers has decreased throughout the country compared to last year, with the exception of Troms og Finnmark.

Measured in absolute numbers, the labour shortage is greatest in Oslo, followed by Øst-Viken.

One in four businesses said they experience recruitment problems – 26 percent responded that they had had problems getting labour in the last three months.

Furthermore, many companies replied that they could not hire anyone, while others ended up hiring workers with lower or different formal skills than they were looking for.

In-demand professions in 2023

According to the NAV survey, the occupational groups with the most significant labour shortage include:

  • Nurses, health professionals, social workers, and other health workers
  • Store and sales staff
  • Cooks
  • Carpenters, plumbers, and electricians
  • Primary school teachers

The greatest labour shortage is present within health and care services, where employers report a shortage of around 13,000 workers.

While the shortage of labour in the construction industry has fallen sharply, from 13,700 people last year to 7,600 people in 2023, it is still the industry with the second largest labour shortage in Norway, the NAV points out.

Lower optimism when it comes to new hires

On the other hand, the optimism related to new hires and expansion among Norwegian companies in the year ahead is also weaker than last year.

This year, the net share of businesses that expect growth in employment in the coming year is 13 percent – a decrease from 22 percent last year and the lowest level since 2016.

Some 25 percent of Norwegian businesses expect to increase staffing in the coming year, while 11 percent expect a reduction.

At the same time, 64 percent think the staffing situation will remain the same.

The decline in expected new hires is greatest in accommodation, construction, and information and communication services.

Demand for qualified labour to increase

According to the NAV’s new global analysis, the need for qualified labour will continue to increase in the coming years.

The analysis also highlights global uncertainty and the risk of increased income differences.

“Considering the great need for skilled workers, greater provision must be made for workers to receive the training they need in the workplace. The education sector, the NAV, and employers must work together to find good solutions,” Holte said.

The NAV business survey was conducted from January 30th to March 17th among a representative sample of all the country’s public and private enterprises.

Almost 11,000 businesses took part in this year’s survey.

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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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