3.8 per cent fewer man-years in 2016

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The number of man-years in Svalbard fell by 3.8 per cent in 2016. It was especially the reduced activity within coal mining that contributed to the decline.

The total number of full-time equivalents (FTEs) fell from about 1650 to 1590 man-years in 2016, according to Industry statistics for Svalbard. This decline of 3.8 percent was mainly due to less activity at Store Norske where over 40 percent of the man-years vanished.

As a result of falling coal prices, it was decided to introduce operational breaks in the Svea Nord mine from April 2016. This led to a significant downsizing of the company. Some employees were transferred to Mine 7, which as of now is the only mine in operation in the upcoming period.

Unstable coal prices

The year 2016 was characterized by fluctuating coal prices. In the first part of 2016 there was a surplus of coal in the European market which led to low spot prices. However, changes in the market situation in the spring led to growth in coal prices. The international coal price index varied in 2016 between USD 42 to USD 97.

The decline in activity in coal mining seems to have effects on its goods and services suppliers, such as construction, which had a decrease of 12 per cent in full-time equivalents. At the same time, growth in other industries, such as arts, entertainment and recreation, as well as administrative and support services, have seen significant growth, which limits the overall decline in man-years.

Figure 1. Number of man-years by industry

2008 2009 2010 2011 2012 2013 2014 2015 2016
B Mining and quarrying 440.3 395.6 366.7 383.5 410.3 345.2 351.4 262.4 152.8
C-E Manufacturing, electr., watersupply, sewerage, waste 32.4 31.9 26.4 29.2 28.2 27.5 38.6 55.4 53.6
F Construction 183.6 168.4 162.8 170.8 203.3 212.7 215.3 196.2 172.3
G Domestic trade, car repair shop 105.9 115.7 106.9 105.7 114.8 118.7 103.1 131.3 154.4
H Transportation and storage 109.7 98.9 102.8 103.7 110.6 112.7 98.6 86.1 91.8
I Accommodation, food service 137.3 134.5 146 189.7 212 216.8 245.4 260.4 232.8
J Information, communication, financial and insurance act. 44.4 39.7 44.4 50.1 50.3 51.6 55.7 55.2 53.9
L Real estate activities 1.3 2.7 0.7 2.6 3.5 6.5 5.7 6.3 11.4
M Profess., scientific, tech. act. 25.9 28.3 33.4 34 40.8 44.3 41.3 40.9 40
N Administrative, support service 134.9 108.9 109.9 137.1 103.5 100 96.3 105.2 131.7
O Public adm., defence, soc. security 71.4 71.1 80.3 82.8 78.8 79.1 72.4 80.9 83.5
P Education 143.3 124.5 117.4 138 150.1 152.9 162.6 198.6 192.3
Q Human health, social work 68.8 76.7 64.2 63 69.6 70.3 62.9 66.3 59.1
R Arts, entertainment and recreation 29.7 40 35.1 39.2 47.8 44.7 70.4 95.6 146.1
S Other service activities 18.4 17.8 14.5 9.4 9.5 10.3 11.2 12 13.5

Other industries take over

The importance of the different industries on Svalbard has changed significantly in the period 2008 to 2016. While mining and quarrying reached its lowest level in man-years since 2008, accommodation and food services have surpassed the number of man-years in the mining business with a good margin. Another industry that shows increased activity during the period is arts, entertainment and recreation. This industry includes companies appearing after the increasing demand for adventure activities.

New businesses have established themselves within real estate activities as well as administrative and support services. These industries showed growth in both turnover and man-years from 2015 to 2016.

Figure 2. Turnover by industry. NOK million

2015 2016
S Other service activities 8 8
R Arts, entertainment and recreation 110 126
Q Human health, social work 13 13
P Education 68 63
O Public adm., defence, soc. security 7 8
N Administrative, support service 196 225
M Profess., scientific, tech. act. 33 32
L Real estate activities 94 114
J Information, communication, financial and insurance act. 444 420
I Accommodation, food service 334 351
H Transportation and storage 202 361
G Domestic trade, car repair shop 447 420
F Construction 514 533
C-E Manufacturing, electr., watersupply, sewerage, waste 134 154
B Mining and quarrying 581 671

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