Executive Search in Norway– 2015 Outlook
Sound Economy Withstands 41% Drop In Oil Prices
As with most sectors of the economy, executive search in Norway has been impacted by the drop in oil prices. A Bloomberg Business report states that a 41% drop in oil prices from a June high is proving to be the worst since the financial crisis erupted in 2008.
The slump has put pressure on a nation that relies on energy resources for about 22 percent of its output. In the past few months, Norway’s oil industry has lost about 10,000 jobs, including contractors, while oil companies see a 13% decline in investments this year, according to a key survey by the nation’s statistics agency.
However, an OECD report states that Norway’s mainland economy has been partially insulated from global financial turbulence and oil price volatility, reflecting the well-functioning fiscal framework governing oil revenues. The economy is projected to retain its momentum despite lower oil prices and falling investment by the oil industry in the near term. Household demand will remain solid with steady employment gains and rising household net worth.
Also, other parts of Norway’s economy could prosper. Companies that export could get support from the fall in value of the Norwegian krone, which has weakened 18% against the dollar in the last six months. That could boost the competitiveness of many exporting firms, and strengthen investments in many areas as the global economy improves.
Norway still has a very low unemployment rate below 4%, and there is normal business activity across most industries. The Norwegian labor force is getting increasingly more international, with many candidates gaining both academic and employment experience from abroad. The Norwegian population is also very tech-savvy, with a high penetration of computers, internet and mobile phones.
JP Cornerstone help companies identify and recruit outstanding candidates for management positions across functions and industries in Norway. We can provide local support and expertise to international companies looking to expand in Norway.