Impact of immigration on Norway

Like many developed countries,Norway faces the challenges of an ageing population this is mainly due to ; the combination of demographic effects of the baby booms that marked the immediate post-war period, the fall in fertility rates that began from the late 1960s, and longer life expectancy. This have implications on the sustainability of the pension and benefit systems and for labour market equilibrium. Since there are more elderly persons and fewer young persons, Norway is expected to experince a fall in labour supply within the next few decades. This implies that more people of foreign origin will have to enter the labor force. Inflow of aliens in the country have made immigration and immigration policy a major issue in Norway. Norwegian people are concerned that immigration reduces employment opportunities for existing workforce, depresses wage rates in already low wage labour markets, and financially strains taxpayers via their receipt of transfer payments and use of social service programmes.