Norwegian businesses face challenges amid weak krone and skills shortage

Norwegian businesses are facing challenges due to a weak krone and instability in the global economy. Many foreign workers have returned to their home countries as wages in kroner have decreased, raising concerns about a potential skills shortage when the industry rebounds. Directors are urging the government to implement counter-cyclical measures to stimulate housing construction. According to the NHO’s skills barometer, 60% of companies report a lack of skills needed to achieve their desired results.

The Norwegian krone is critically weak, with the euro costing over 12 kroner and the dollar over 11 kroner. High import prices, a struggling krone, and unreliable foreign labor are worrying local businesses. For Isola, a factory in Porsgrunn that produces construction materials, the situation is dire. CEO Bjørnar Gulliksen expressed anxiety about the industry’s future, noting they import 80% of their raw materials and pay in dollars or euros. Many foreign workers feel undervalued when converting their kroner wages, leading to some returning home due to prolonged inactivity in the construction sector.

Gulliksen fears that when activity eventually picks up, there may be a shortage of workers. He advocates for government action, such as energy efficiency improvements in existing buildings, to stimulate housing development and stabilize the krone.

Kristin Saga, regional director of NHO, highlights a severe skills shortage impacting various industries. The tourism sector, for example, struggles to find chefs and waitstaff as demand for foreign workers has plummeted. While a weak krone benefits some businesses, like the tourist industry, which sees an influx of foreign visitors, it can hinder service quality due to a lack of skilled labor. Meanwhile, the export industry may thrive as products become more competitively priced internationally.