The Fishing Fleet Creates Great Value for Norway
The Norwegian fishing fleet creates substantial value and significant economic ripple effects. In 2023, the net value creation from fisheries amounted to NOK 22.2 billion. The ripple effects of the fleet purchasing goods and services for 9 billion annually reach most of the 357 Norwegian municipalities.
The recent Nofima report “Ripple Effects from Norwegian fisheries in 2023” shows that NOK 15.7 billion was created directly in fisheries, while the fleet’s purchases also provide the basis for value creation of 6.5 billion among the fleet’s suppliers, their suppliers next, and so on.
Those who might think that only the most fishery-dependent communities in Northern Norway and along the western coast of Norway profit from fishing activities must reconsider. This turns out to be incorrect.
“The value creation in core activities – wages and returns to vessel owners – is distributed across 274 municipalities. When including ripple effects, the fishing fleet contributes to value creation in nearly every municipality in Norway,” says Nofima researcher Audun Iversen.
He is the project manager for the ripple effects report on the fishing fleet’s economic significance.
17,000 Jobs in Fisheries
The report also shows that in 2023, the fishing fleet generated employment for approximately 17,000 people. Of these, 11,000 worked directly in fisheries, while the industry also generated 6,000 jobs through ripple effects.
The number of men with fishing as their main occupation has almost halved in the last 30 years. Regarding women with fishing as their main occupation, the number has first halved over the last 30 years, only to double again. By the end of 2023, there were almost 500 female professional fishers, compared to 250 ten years ago.
Nordland has the largest total employment at 3,126, followed by Møre og Romsdal with 3,108, Vestland with 2,436, and Finnmark with 2,066 employed in fisheries.
“Regions with large fishing operations see the greatest economic multiplier effects, though other regions also experience some economic benefits”, says Audun Iversen.
The figures also show that the coastal fleet employs the most people in fisheries. In the coastal fleet, total employment is 9,200, where 6,600 are fishers while 2,600 are ripple effects. In addition, there are around 130 employees in various administrative positions at the shipping companies.
Employment in and from the ocean-going fleet was 7,600, where 4,300 are employed in the fleet segment, while 3,400 are ripple effects.
Value Creation Distributed by Fleet Groups
The researchers have also distributed value creation across the different vessel groups in fisheries. And while the coastal fleet employs the most people, it’s the ocean-going fleet that generates the greatest value.
The coastal fleet had a total value creation of NOK 9.6 billion in 2023, where 7 billion was from core activities while 2.5 billion was ripple effects.
For the deep-sea fishing fleet, total value creation in 2023 was NOK 12.6 billion, where 8.6 billion was from core activities while 4 billion was ripple effects.
“The value creation in the fishing fleet is distributed with 49 percent as labour compensation to fishers, 44 percent to capital owners while 7 percent of value creation goes to various fees. In addition, tax is paid on wages and profit to owners,” summarizes Nofima researcher Silje Steinsbø.
Nordland and Møre og Romsdal Have the Greatest Value Creation
The five counties Nordland, Møre og Romsdal, Vestland, Finnmark, and Troms account for the majority of value creation from fisheries. Nordland and Møre og Romsdal are largest with NOK 4.3 billion each in value creation. Vestland, Finnmark, and Troms follow.
“These counties accounted for 85 percent of fisheries’ value creation, which is created through fishing and through purchases of goods and services,” says Silje Steinsbø.
The fishing fleet and its suppliers paid a total of NOK 5.4 billion in tax in 2023. Of this, 1.35 billion came from corporate tax, while the rest was personal tax from employees.
The report also points out that the export value of Norwegian wild-caught fish increased by 8.5 percent from 2022 to 2023, from 40.7 to 44 billion kroner, an increase that also has a significant importance for ripple effects.
“The report shows that the fishing industry continues to be a cornerstone in many coastal communities. It creates significant value and jobs, not only for fishers but also for many other industries along the coast,” says Audun Iversen.
