In recent years, labour market developments have altered the demand for labour. Increasingly, employers are looking for adaptable workers, with more 'transversal' and 'relational' competences. The nature of skills required to be considered efficient in a job has thus evolved. In this situation, there is a growing risk of exclusion among unemployed workers whose profiles do not match the job characteristics needed, while the low-skilled or unskilled workforce is more at risk of unemployment.
This article gives a brief overview of the industrial relations aspects of the topic of unskilled workers and unskilled work in Norway, as of February 2005. It looks at: national definitions of unskilled workers or work; the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work; employment and unemployment among unskilled workers; the regulatory framework; trade union organisation among unskilled workers; pay and conditions; recent initiatives to improve the situation of unskilled workers; and the views of trade unions and employers' organisations on the issue and its implications for collective bargaining.
In recent years, labour market developments have altered the demand for labour. Increasingly, employers are looking for adaptable workers, with more 'transversal' and 'relational' competences. The nature of skills required to be considered efficient in a job has thus evolved. In this situation, there is a growing risk of exclusion among unemployed workers whose profiles do not match the job characteristics needed, while the low-skilled or unskilled workforce is more at risk of unemployment.
In this context, in February 2005 the EIRO national centres were asked, in response to a questionnaire, to give a brief overview of the industrial relations aspects of the topic of unskilled workers. The following distinctions are used, where applicable:
(a) an unskilled job is a job which requires, for its proper execution, hardly any formal education and/or training and/or experience;
(b) a worker in an unskilled job is a worker doing such a job, irrespective of their level of qualifications or competences (especially under conditions of high unemployment, a significant share of those occupying unskilled jobs may be 'overeducated' for them, or 'underemployed'); and
(c) an unskilled worker is someone who has only the lowest level of qualifications or education (however defined).
The questionnaire examined: national definitions of unskilled workers or work, including those used or provided in laws, statistics or collective agreements; figures or estimates on the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work; employment and unemployment among unskilled workers; the regulatory framework, including any specific laws or collective agreements, and trade union organisation among unskilled workers; the pay and conditions of unskilled workers and workers in unskilled jobs, or for unskilled jobs; any recent initiatives to improve the situation of unskilled workers; and the views of trade unions and employers' organisations on the issue and its implications for collective bargaining. The Norwegian responses are set out below (along with the questions asked).
Definitions and extent
(a) Please provide a definition of unskilled workers or work (see distinctions above) in your country. Are there any definitions provided in laws, statistics or collective agreements?
There is no formal definition of unskilled workers or unskilled work in Norway. Different concepts or definitions are used in research, public statistics and collective agreements. A common concept might be jobs where no formal skills (such as crafts certificates etc) are required, and workers who have such jobs. Public statistics do not give information on the number of such jobs (or the number of employees in such jobs), but educational level and, to a certain degree, statistics on occupational level may be used as indicators. There are no statistics on 'mismatches', ie skilled workers in unskilled work or vice versa.
Employees with only primary and lower-secondary education
One definition that might be used is based on the educational level of the employee. Employees with no education beyond compulsory education/basic education (primary and lower-secondary education - today amounting to 10 years) might be regarded as unskilled workers. In some instances (eg in research), one might also want to include groups who have not finished higher-secondary education although they have some kind of education beyond lower-secondary level.
Elementary occupations (unskilled work)
A standard classification scheme for occupations exists, among other purposes for public statistics, the Labour Market Administration etc. The basis of the Norwegian standard ('STYRK') is the International Standard Classification of Occupations ISCO-88(COM), which is based on the International Labour Organisation occupational classification (OSCO-88). The classification standard is continually being updated through the introduction of new occupations in order to adjust to the needs of the Labour Market Administration (Aetat). The occupational classification standard is based on skills level and skills specialisations. 'Elementary occupations' (group 9 in STYRK) includes occupations that normally require no more than primary education. This can be regarded as unskilled work. This classification was introduced in around 2000. Only a limited number of occupations are classified as elementary occupations - for instance, no occupations in the health and social services are included - and the general concept of unskilled work is considerably wider than this group.
Collective agreements - non-skilled employees
Blue-collar collective agreements within the manufacturing sector (and others) define skilled, semi-skilled and unskilled occupations. Skilled workers are normally employees with crafts certificates. In the municipal sector, a number of occupations are classified as occupations that do not require any specific education. A very rough estimate is that this last group constitutes a third of the employees in this sector.
(b) Are there any figures or estimates available on the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work. How have these figures changed in recent years - have changing skill needs or improvements in education/training systems led to a reduction in the numbers of unskilled jobs, unskilled workers and workers in unskilled jobs? Please break all figures down by gender where possible.
The population's educational level has increased and the percentage of the (employed) population with only basic education (lower-secondary level) has decreased over time. In 2001, approximately 12% of employees had no education beyond this level - see table 1 below. This figure is probably lower today. The percentage of employees not completing upper-secondary education is considerably higher. The number (and percentage) of employees with a completed secondary education or education at higher level is expected to increase in the future. An analysis by Statistics Norway estimates that the percentage of employees with a low level of education (here defined as one year of upper-secondary education or less) will decrease from 38% in 1995 to 21% in 2010.
| 1991 | 1996 | 2001 |
| 17.1 | 16.3 | 12.2 |
Source: Statistics Norway Labour Force Surveys.
The proportion of employees in elementary occupations (occupations that normally only requires primary education) is 6%. The new classification system was introduced in 2000 (see above) and it is therefore difficult to comment on the development over time. However, this classification underestimates what is normally regarded as unskilled or low-skilled work - for instance, few public sector occupations are included.
(c) Please provide figures on employment and unemployment rates for unskilled workers, compared with higher-skilled groups. Have unskilled workers/workers in unskilled jobs been particularly affected by industrial and company restructuring? Have new jobs created in recent years been filled by unskilled workers? Please break all figures down by gender where possible.
The unemployment rate is higher among people with a lower level of education - see table 2 below. However, in Norway the unemployment rate has recently decreased most markedly among employees with education at upper-secondary level or lower. The reason for this is increasing demand for labour in the manufacturing and construction sectors.
| Educational level | Unemployment rate - estimated |
| Below upper-secondary level | 4.2 |
| Upper-secondary level - not completed | 4.4 |
| Upper-secondary level - completed | 3.6 |
| Tertiary education, short (up to 4 years) | 2.6 |
| Tertiary education, long (4 years or more) | 1.8 |
| Total | 3.7 |
Source: Aetat.
There is no systematic information on whether unskilled workers have been particularly affected by industrial or company restructuring. However, it is not unreasonable to expect such an effect, at least in certain kinds of restructuring. In both the private and public sector, many organisations have been reducing their workforces by utilising technology, seeking more effective operation of services and outsourcing certain activities.
There is no general evidence to suggest a development in the direction of new jobs being filled by unskilled workers. Analyses of the labour market suggest that the demand will change in the direction of more qualified workers. The most recent analysis also suggests that there will not be any major mismatches between demand and supply of qualified/unskilled labour as such (see Godt samsvar mellom tilbud og etterspørsel for de fleste typer arbeidskraft, Nils Martin Stølen, Samfunnsspeilet nr. 2, 2002). However, there will be some mismatches with regard to particular occupations.
Regulation and conditions
(a) Is there a specific regulatory framework in your country concerning unskilled workers and workers in unskilled jobs (however defined)? Are there specific laws or collective agreements? Are there specific trade union organisations for them, or are they represented in 'normal' union structures. Have there been any changes in these area reflecting the changes referred to in question (b) under 'Definitions and extent' above?
There is no specific regulatory framework concerning unskilled workers/unskilled work in Norway. Trade unions (with the exception of professional unions) normally organise by sector - in the private sector often with a distinction between unions for blue-collar workers and white-collar workers - and the relevant trade unions organise both skilled and unskilled workers within the sector. Collective agreements normally cover both skilled and unskilled workers within a given sector. In the private sector (manufacturing), there are different agreements for white-collar and blue-collar employees.
(b) Please provide any figures available for the pay of unskilled workers and workers in unskilled jobs, or for unskilled jobs, and the relationship of this pay with the average or with higher-skilled groups. Do collective agreements contain specific pay grades for unskilled workers, or workers in unskilled jobs? Please break all figures down by gender where possible.
There is a variety of wage statistics covering different sectors and groups. Unskilled work/workers will to some degree be defined by collective agreements, ie there are different pay rates for what are regarded as skilled and unskilled workers, qualified work etc. If one ignores such distinctions - which normally do not overlap with statistical classifications based on occupation - educational level is probably the best indicator for variation in wages by skills level. Table 3 below shows the monthly wage level by educational level and gender.
| . | Below upper-secondary level | Upper-secondary level | Tertiary education, short | Tertiary education, long |
| All | 23,817 | 25,659 | 31,564 | 39,487 |
| Women | 21,457 | 23,096 | 27,888 | 34,413 |
| Men | 24,749 | 26,784 | 34,759 | 41,577 |
Source: Statistics Norway.
The average wage level of employees with only basic education is normally 90%-95% of the average wage level among employees with crafts certificates - see table 4 below.
| . | Below upper-secondary level (basic education) | As % of wage level of employees with crafts certificates | As % of wage level of employees with 4 years or more education at university level (tertiary education, long) | |||
| Men | Women | Men | Women | Men | Women | |
| Manufacturing | 286,600 | 253,200 | 91 | 89 | 52 | 56 |
| Construction | 304,200 | 261,400 | 95 | 92 | 56 | 56 |
| Trade (retail and wholesale) | 303,800 | 259,500 | 97 | 96 | 56 | 55 |
| Finance | 393,000 | 304,000 | 104 | 100 | 64 | 62 |
| Education | 300,300 | 280,200 | 90 | 95 | 75 | 72 |
| State | 286,600 | 262,800 | 96 | 100 | 71 | 72 |
| Municipal/county municipal services | 261,400 | 241,900 | 96 | 97 | 67 | 68 |
Source: NOU 2004: 10 Om grunnlaget for inntektsoppgjørene 2004.
Collective agreements will normally set different pay rates for unskilled work and skilled work at different skills levels. In the manufacturing sector, the distinction is normally between unskilled, semiskilled and skilled workers. In other sectors, other distinctions are used.
Actions and views
(a) Please describe any recent initiatives taken jointly or separately by companies, public authorities (national or local) or the social partners (eg collective agreements) to address the situation and improve the situation of unskilled workers in terms of pay, working conditions, training, employability, unemployment etc.
It is probably correct to say that the most important initiatives in this area have been taken in relation to training. As part of the so-called competence reform (NO9901113N), steps have been taken to improve the possibility for people who have not completed upper-secondary education (and the small group without lower-secondary education) to do so. People born before 1978 have been granted an individual statutory right to upper-secondary education. Such education will be based on prior learning, formal and non-formal, and should be adapted to suit the needs of individuals. The same applies to adults who need lower-secondary education. Employees have also been granted a statutory right to study leave (of up to three years). Another objective of the competence reform is to improve the documentation and recognition of non-formal learning. Such systems will also benefit employees with little formal education but with considerable work experience. The evaluation of non-formal learning may also lead to admittance to university studies (in general or by shortening the number of courses needed to be granted admittance). So far, only a rather limited number of employees have utilised the right to study leave or their individual right to basic education/upper-secondary education.
Labour market training aims to provide unemployed people with skills to enhance their job possibilities. Training mainly take the form of shorter courses at upper-secondary level. Such training is directed at improving the employability of the unemployed.
With regard to pay, Norway has no national minimum wage and collective agreement coverage in the private sector is estimated to be 50%-55%. The group of employees who are not covered by collective agreements consist both of low-wage/low-skilled workers (many in private services) and various groups of white-collar employees. Unions that organise low-wage groups usually try to give special attention to such groups during wage negotiations at central level (see next point).
(b) Please summarise the views of trade unions and employers’ organisations on the issue and its implications for collective bargaining.
The main perspective of relevant trade unions is to give priority to low-wage groups in central-level negotiations through general increases (through industry-wide bargaining or by copying the 'trendsetting' industries) or through various guarantee arrangements. Low-wage groups will often (but not always) overlap with low-skilled employees. One might argue that the groups that have so far been given special attention are low-paid groups in the public sector (mainly female-dominated groups with unskilled or semiskilled jobs working in health and social care) and low-wage groups (mainly unskilled) in the private services. In the main private sector bargaining area covered by the Confederation of Norwegian Business and Industry (Næringslivets Hovedorganisasjon, NHO) and the Norwegian Confederation of Trade Unions (Landsorganisasjonen i Norge, LO), bargaining units with a low average wage level will normally be given higher central-level increases than other groups (NO0503103F). In the public sector, general increases have often been given as a flat-rate sum to all employees - thereby securing the lowest paid a higher percentage increase. Lately, unions outside LO (mainly unions for professionals in the public sector) have criticised what they see as wage compression, and argue that their member groups are not sufficiently rewarded for their skills.
In principle, employers want to see more decentralised and individualised wage setting. This has in particular been the case in the public sector where wage bargaining/wage systems have traditionally been centralised (but where a decentralisation has taken place). In the private sector ,employers have been arguing for more individualised or performance-based wage systems.
Comments
In the Norwegian labour market, unskilled (or low-skilled) work and workers can be found in various sectors. It is assumed that these groups often are more vulnerable than others in the labour market, in particular older workers with low skills, immigrants etc. Their unemployment rate is higher, and employees with a lower educational level tend to leave the workforce earlier than employees with education at university level. Even if these groups have been given special consideration in the 'competence reform', it is recognised that there is still a long way to go before the new rights awarded are taken advantage of by the relevant employees. However, there is also a long-standing tradition whereby formerly unskilled work is 'upgraded' by the introduction of crafts certificates in new areas - an example is cleaning. Workers with long working experience can obtain a crafts certificate through a combination of training/courses and by passing practical tests. (Kristine Nergaard, FAFO Institute for Applied Social Science)
Eurofound recommends citing this publication in the following way.
Eurofound (2005), Thematic feature - unskilled workers, article.
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