Norwegian industry struggles to fill the talent gap: Tech sector faces urgent need for skilled labor
New report shows that nearly 2/3 of the Norwegian industry face a talent shortage and there is a great demand for highly educated talent, especially in the most central areas of Norway, such as Oslo.
Yesterday, 14 Feb 2023, the Confederation of Norwegian Enterprise (NHO) presented its annual “Competence barometer” (NHOs kompetansebarometer in Norwegian) tracking skilled labour needs across its 30.000+ member companies.
The need for highly educated tech talent is increasing
The trade associations reporting the highest need for competence, are: the Federation of Norwegian Industries (69%) and Nelfo - the trade association for electro, it, ecom, system integrators (67%). Abelia - the business association of Norwegian knowledge and technology based enterprises comes in third, tied with the Federation of Norwegian Transport Enterprises (both at 65%).
Tech talent demand is soaring, with associations like the Federation of Norwegian Industries (69%) and Nelfo- the trade association for electro, it, ecom, system integrators (67%) reporting the highest needs. Abelia- the business association of Norwegian knowledge and technology based enterprises and the Federation of Norwegian Transport Enterprises follow closely, both at 65%.
Tech-centric associations like Abelia and Renewables Norway report over 80% demand for master's degree holders, mainly in IT and engineering—a 10% jump from last year.
Few companies look to recruit internationally, but those who do sees it as a strength
Nearly half of companies struggle to fill specific roles, often settling for lower-skilled hires or leaving positions vacant. While only a third of companies see international recruitment as relevant, some sectors view it as necessary due to Norway's limited talent pool, especially for highly educated roles.
Labor from abroad is not just something the companies are looking for because they are experiencing challenges with the Norwegian labor market. Nearly two-thirds of the businesses respond that expertise from abroad is to some or a large extent a strength for the business.
For tech-heavy organizations like Abelia, international recruitment is critical due to program gaps in Norwegian education (17%), lack of local talent (66%), and the recognized strength international hires bring (60%).
What does this mean for Oslo based startups and scaleups?
These fresh numbers from the Norwegian industry mirror a lot of the same challenges we see for Oslo based startups and scaleups. They lack the skilled workers needed to scale their business and many have to look internationally to recruit. The need for highly educated people, especially in the IT and tech sector, is not a unique challenge to Norway and the global competition for tech talent is fierce.
Access and retention of talent are key challenges for economic development and growth for Oslo. To compete globally for talent, better collaboration between startups, government, and established businesses is essential. Failing to attract and retain international talent risks losing the talent battle.
How we support the startup and scaleup ecosystem in Oslo:
Oslo Business Region collaborate with industry clusters, public organizations and growth companies to attract and retain international skilled workers and talent mainly within tech and IT.
To learn more about our talent initiatives and how we help startups and scaleups, please contact Martine Mæland below.
