The link between few vocationally trained workers and unemployment

Norway lacks skilled workers, still unemployment among young people is rising. Figures show that those with vocational education have the highest employment rate, but too few complete the training. Norway has the highest dropout rate in the entire EU/EEA. The result is substantial costs for society.

March 21, 2025

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Unemployment affects more graduates of higher education than those with vocational training

Enormous sums of taxpayers' money are draining away into unemployment, while the cause of youth unemployment is obvious.

As many as 93% of people with vocational education in Norway are in work, according to an article from Statistics Norway published in October last year (the figures are from 2023). That is in fact slightly more than those with a bachelor's degree.

In the group under 25, unemployment was 11.4% in 2023; last year that figure had risen to 12.1%. Overall unemployment was 3.6% in 2023, which shows that those under 25 push the statistics up considerably. Furthermore, 36.7% of those under 25 were in higher education in 2023.

Highest dropout rate in the EU/EEA

This year 54% have applied for vocational education, but not all of them will complete it. Norway has the highest dropout rate in vocational education in the EU/EEA. In the period from 2017 to 2023, only 70.9% completed vocational education, compared with as many as 91% in general studies. The gap is so large that it is incomprehensible that politicians have allowed this to happen.

In 2022, a place at upper secondary school cost NOK 181,600 a year, while as many as 20,500 failed to complete vocational education. That means NOK 3.7 billion of taxpayers' money was squandered in that year alone.

The figures above show that quality-based vocational education is the key to getting young people into work. They make clear that the vocational education pathway is not sufficiently adapted to the pupils.

Misguided prioritisation of higher education

The cause of the situation is that Norway has for years had an unrealistic focus on higher education. It is not the case that all jobs in Norway require higher education, as the 88,000 vacant jobs and the need for labour testify. There is probably a high proportion of overqualified people in Norwegian positions. Although this must be a real problem for the entire workforce, the only available figures from Statistics Norway relate to immigrants: as many as 40% of them were overqualified for their position in 2021. An audit report from Skien municipality shows that the municipality has too few qualified health workers, but also workers who are overqualified for their positions.

There is reason to believe that overqualified employees drive up wage costs in both the public and private sectors.

A comparison with other European countries shows that Norway has a very high number of people with higher education and a low number with vocational training. Where did politicians think this would lead us?

The discussion still goes on as if the solution did not lie there. As recently as yesterday, vocational education and unemployment were a topic on NRK Nyhetene and Dagsnytt 18 respectively. How many years is this subject to be chewed over by politicians? How long are they going to talk about immigrants and young people on disability benefits in this context? It is entirely unwarranted and looks like deliberate diversion and evasion of responsibility. Meanwhile the Norwegian press is asleep at the wheel and lets the politicians set the agenda.

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