Photo: Nofima report

The Norwegian Fishing Fleet: A Cornerstone of Economic Value Creation

NORWAY
Wednesday, January 15, 2025, 00:10 (GMT + 9)

The Norwegian fishing fleet generates substantial value and far-reaching economic ripple effects. In 2023, net value creation from fisheries reached NOK 22.2 billion. Additionally, the fleet’s annual procurement of goods and services, totaling NOK 9 billion, impacts nearly all of Norway’s 357 municipalities.

A recent Nofima report, "Ripple Effects from Norwegian Fisheries in 2023," highlights that NOK 15.7 billion was generated directly by fisheries, while NOK 6.5 billion stemmed from ripple effects across the fleet’s suppliers and their extended networks.

Broad Economic Benefits Across Norway

Contrary to popular belief, the economic benefits of fishing are not confined to Norway's most fishery-dependent regions, such as Northern Norway and the western coastline.

“The value creation in core activities—wages and returns to vessel owners—is distributed across 274 municipalities. Including ripple effects, the fishing fleet contributes to economic activity in almost every Norwegian municipality,” explains Nofima researcher and project manager Audun Iversen.

Employment: 17,000 Jobs Tied to Fisheries

In 2023, the fishing fleet supported approximately 17,000 jobs, with 11,000 working directly in fisheries and an additional 6,000 employed indirectly through ripple effects.

While the number of male fishers has nearly halved over the past 30 years, the number of women in fishing has seen a resurgence. Female fishers have doubled in the past decade, reaching almost 500 by the end of 2023, compared to just 250 a decade earlier.

<--Total employment from fisheries in 2023 (Source: Nofima)

Regionally, Nordland leads in employment with 3,126 jobs, followed by Møre og Romsdal (3,108), Vestland (2,436), and Finnmark (2,066).

“Regions with large fishing operations experience the greatest economic multiplier effects, though other areas also see notable benefits,” adds Iversen.

Coastal Fleet vs. Ocean-Going Fleet: Employment and Value Creation

The coastal fleet employs the largest number of people, totaling 9,200, including 6,600 fishers and 2,600 through ripple effects. Additionally, around 130 administrative positions are associated with coastal shipping companies.

The ocean-going fleet supports 7,600 jobs, with 4,300 employed directly in the fleet and 3,400 through ripple effects.

However, when it comes to value creation, the ocean-going fleet takes the lead.

• Coastal Fleet: Total value creation in 2023 reached NOK 9.6 billion (NOK 7 billion from core activities and NOK 2.5 billion from ripple effects).
• Ocean-Going Fleet: Total value creation was NOK 12.6 billion (NOK 8.6 billion from core activities and NOK 4 billion from ripple effects).

“Value creation is distributed as 49% labor compensation for fishers, 44% returns to capital owners, and 7% to various fees. In addition, taxes are paid on both wages and profits,” explains Nofima researcher Silje Steinsbø.

Key Regions for Value Creation: Nordland and Møre og Romsdal

Five counties—Nordland, Møre og Romsdal, Vestland, Finnmark, and Troms—account for the lion’s share of fisheries’ value creation. Nordland and Møre og Romsdal lead with NOK 4.3 billion each in value creation, followed by Vestland, Finnmark, and Troms.

“These regions account for 85% of the value creation from fisheries, achieved through both fishing activities and the procurement of goods and services,” says Steinsbø.

Nordland and Møre og Romsdal are largest both in terms of value creation and employment in Norwegian fisheries. Illustration: Nofima.

Tax Contributions and Export Growth

In 2023, the fishing fleet and its suppliers paid NOK 5.4 billion in taxes. Of this, NOK 1.35 billion came from corporate taxes, while the remainder was personal taxes from employees.

The export value of Norwegian wild-caught fish also rose by 8.5%, increasing from NOK 40.7 billion in 2022 to NOK 44 billion in 2023. This growth has further amplified the industry’s economic impact.

Conclusion: A Cornerstone Industry for Norway

“The fishing industry remains a cornerstone for many coastal communities, creating significant value and employment not only for fishers but also for numerous other industries along the coast,” concludes Iversen.

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