Possible impacts on Norway’s economy with unemployment rates at 4%
Based on continued dropping unemployment rates, it appears that immigration and work opportunities in Norway may be a possibility for foreign workers. With a current unemployment rate of only 4%, and employers struggling to find enough workers for the jobs available, it may be easier for those looking to make a career move to do so in this country. With overall sales within the country on the weaker side of the spectrum, it is surprising to see unemployment rates as low as they currently are. While Norway has taken nearly 5 years to recover from the collapse in oil prices in 2014, the economy still has some ways to go before it can be considered thriving again.
As the country’s banks are preparing to raise interest rates even higher, it is expected that more people will be looking for jobs and the unemployment rate will drop even further. This makes the labor market different for employees and organizations in a variety of altered ways. Some people may not have had to work in the past and were able to rely comfortably on a single income as a family. Now with rising interest rates and an increase in the required minimum payments, it may be obligatory for more non-working individuals to look for employment again.
For those who have been out of the labor pool for a period of time, this may provide an increased level of stress as they may have a harder time securing a job in comparison to people who have recent experience. Those with more current practice are often preferred for jobs in comparison to those that have not worked for a while. However, more people going back to work should increase the health of their overall economy. Norway is also, on average, an extremely highly educated country, which means that those with lesser educational degrees may have a harder time securing work in comparison to those with many years of post-secondary education.
Additionally, this labor market situation will provide many opportunities for those looking for growth or change in their current work situation. There will be more opportunities for promotion, and less competition for jobs that are available for higher levels of experience. This can be detrimental to organizations as they may be forced to pay more to keep their current employees from leaving and following better opportunities and payment offers at other organizations. In Norway, it is common practice to attempt to hire an individual for their entire working life. Keeping this theory in mind, many employees may not be interested in shifting to other organizations, which can make the situation difficult for the companies that are looking to hire skilled individuals from a small pool of available and qualified applicants.
Employment rates in Norway have now reached the highest in the last 3 years. While it is fortunate that the country’s economy is able to support over 2.7 million jobs and most of the applicable working population, there are still a large number of jobs that need to be filled, and not very many available and qualified people to fill them.
The current low unemployment rates in Norway may provide a plethora of opportunities for foreign workers looking to work in Norway. More jobs may be available with less competition, especially in sectors that don’t require higher levels of education. Rates of pay may also be higher, as organizations are willing to pay more to ensure the loyalty and dedication of their employees. However, when working in Norway, individuals must be prepared to pay much higher taxes than in other countries.
