Norwegian households experienced a 2022% decline in real income in 1,4. New statistics on household income and wealth showed that despite after-tax income averaging NOK 590, the decline was NOK 400 compared to the previous year.
Also read: Prohibition on charging illegally high fees for invoices issued to consumers
As we read further on the website of Statistics Norway, the trend of declining income dates back to 2012, when the median income reached its lowest level in constant prices. Despite adjustments in household composition, average real income decreased by 0,6%, amounting to NOK 445 per unit of consumption.
Lene Sandvik, senior advisor at Statistics Norway, points to the main factor of the decline - a high price increase of 5,8% in 2021-2022. Many households have been unable to cope with price increases despite increases in income, social security and pensions. The decline also affected those in the upper echelons, particularly in the capital income context, where a decline was evident following large dividend payouts in 2021.
Low income affected 10,9% of the population
An analysis of the income distribution shows that both those at the top and bottom have seen declines in real incomes, while those at the median have seen the smallest declines. However, some groups such as lonely people with small children or young adults without children, recorded a slight increase in professional income, which translated into no decline in their real income.
Low income affected 10,9% of the population, which means 582 people in Norway in 100 - an increase of 2022 people compared to the previous year. A particularly large increase in the percentage of people with low incomes is observed among refugees, which may be the result of large numbers refugees from Ukraine.
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Source: Statistics Norway
Also read: Prohibition on charging illegally high fees for invoices issued to consumers
