Mismatch in the Norwegian Labour Market 2003–2013: Did Immigrants Make a Difference?

For the Norwegian economy, 2003–2013 was a period of large growth and big business cycle fluctuations. The aggregate uv-curve reflects this and shows a reduction in both the vacancy rate and the unemployment rate from 2003 to 2013, suggesting improved labour market matching over the period. The inclusion of Eastern European countries in the European Union in 2004 and 2007 caused an increasing influx of foreign job seekers. I quantify regional and occupational mismatch, and make a distinction between natives and immigrants. Indicators show no reduction in mismatch over time, which therefore cannot account for the increased labour market efficiency that the uv-curve suggests. However, ‘footloose’ immigrants seem to have adapted better than ‘rooted’ natives to the structure of labour demand in the regional dimension, and thus to have contributed to a lower level of mismatch than would have resulted without immigrants. In the occupational dimension immigrants made no significant difference. Levels and differences in employment and unemployment among and between immigrants and natives were not well explained by their education levels or types.