The Norwegian temping industry is in decline for the 13^th consecutive quarter as work hours are down 6.2% while sales revenue declined by 5.1% compared to the 1^st quarter last year, according to the Norwegian Federation of Service Industries (NHO Service).

In parts of Norway, particularly the western coast, low oil prices are giving the staffing industry great challenges and according to NHO Service, this is the main reason for the decline.

“During the last year, the Norwegian staffing industry has been facing great challenges, mainly because of low oil prices and massive layoffs in the oil related industry,” Even Hagelien, Director of Staffing Industry for NHO Service, said.

The Norwegian labour market is divided between the oil-dependent areas (West- and Southern Norway) and the rest of the country. Agency work is now growing again in the eastern part of the country.

“Now, we have a divided labour market in Norway,” Hagelien said. “Western and southern Norway have been severely hit by the downturn and unemployment rates are rising. At the same time, eastern and northern Norway does not seem very affected. The staffing industry is growing in those areas.

“Even though the low oil prices are pulling the average figures of the market down there are also some positive signs. Low currency value is lifting among others the fishing industry as it gets competition edge,” Hagelien said. “However, the oil industry is very important for the Norwegian labour market and for the growth potential of the staffing industry. The figures of the first quarter shows lower decline in the oil related areas and growth in some of the larger non-oil related markets. This may give us a sign that the market will be stabilizing in 2016. However, we don't believe in growth again until next year.”

Percent change in work hours from Q1 2015 to Q1 2016: