Norwegian Dilemmas: Immigrants Increase Both Employment and Unemployment

Between 2015 and 2024, immigration led to an increase in the number of residents and employed people, but at the same time, it also increased the group of those not active in the labor market. In the population without an immigrant background, there was a slight decrease in the number of residents aged 20–66, while among immigrants, there was a clear increase in this group.

Immigrants account for most of the increase in employment—almost 163,000 people, which is 76 percent of the total employment growth. At the same time, the number of non-working people among the rest of the population fell by over 55,000, while among immigrants it rose by over 46,000. The share of immigrants among non-working people increased from 26.2 to 32.4 percent, with the influx of refugees from Ukraine having a significant impact on this rise.

The largest group of immigrants without work comes from Asia—almost 83,000 people. Other large groups are immigrants from Eastern Europe, both from EU countries and non-EU countries, each with just under 50,000 unemployed individuals.

There are 34,400 non-working people from Africa, and just under 18,000 from Western Europe (excluding Nordic countries). In terms of structure, Asia accounts for just over 32 percent of all non-working immigrants, and each of the two Eastern European groups for just over 19 percent.

The largest group among non-working immigrants are those with a short stay, less than four years in Norway—31.2 percent. The second largest group are people who have lived in the country for at least 20 years, accounting for 24.2 percent, which is linked to a higher average age and lower labor market activity.

In terms of reason for immigration, refugees dominate, including their relatives under family reunification. They make up over 46 percent of all non-working immigrants. About one fifth are other family migrants, and a similar share are labor migrants. Refugees, immigrants from Asia, and those with a short stay are clearly overrepresented among the non-working compared to all immigrants.

Among the rest of the population, the largest share of those not active in the labor market are people aged 55–66, while among immigrants, the distribution is more even across age groups. As many as 69.6 percent of non-working immigrants are aged 25 to 54, compared to 46.3 percent in the rest of the population.

The percentage of people with only primary education is similar, but among immigrants, 34 percent of those without work have higher education, compared to 25 percent in the rest of the population. Among non-immigrants, the largest share are those with secondary education, which exceeds the share of those with only primary education by 4 percentage points.

Among non-working people without an immigrant background, 57 percent receive health benefits, and 9 percent receive pensions or disability benefits, which limits their potential to return to the labor market. Among immigrants, the share using health benefits is much lower, at 26.7 percent.

Immigrants, on the other hand, are more likely to be job seekers or receive other benefits, mainly from social assistance. This group also has a higher share of people with unknown status—36.6 percent, compared to just over 10 percent among other non-working people.

The data show that differences between immigrant groups and the rest of the population are clearly linked to region of origin and length of stay in Norway. Immigrants from Asia and Africa are more likely to use health benefits, while people from Eastern Europe outside the EU participate heavily in integration programs.

Including those studying and seeking work shows that almost 40 percent of non-working immigrants in this group are in the phase of preparing to enter the labor market. Meanwhile, the high share of unknown status among immigrants from EU countries is related to a high level of unreported emigration, which affects the picture of actual labor market activity.