Manufacturing and Shipping

Although today most of Oslo's economic functions are tertiary quaternary and quinary, it was not so long ago that its economy was based on primary and secondary production. Shipbuilding was one of the most important aspects of Oslo's economy until very recently. The industry has a long history in Oslo, beginning in the Viking age, then declining, and finally regaining importance in the 20th century. Although ships are no longer built in Oslo, the shipping industry is still very important. Despite its small size, Norway has one of the largest merchant marines in the world. Traditionally Bergen was Norway most important port, however Oslo overtook it early in the 20th century and now has Scandinavia's largest port facilities. Despite the size of Oslo's port, nine-tenths of Norway's ships do not regularly enter Norwegian waters. Almost all of them however, have their corporate headquarters in Oslo.

Oslo's extensive forests also played an important role in its development. The city long relied heavily on its sawmills. Later, papermills developed as well. There were numerous places to set sawmills and other mills because of a number of waterfalls in the city. In the age before electricity, the water power generated by the falls was vital to much of Oslo's industry.

Postindustrial Economy

Although responsible for much of the city's initial growth, manufacturing has declined almost to the point of nonexistence. Today, most people work in areas of service, administration, or research. One of the largest employers is the national and local governments. Another very important industry is tourism. Most Norwegian corporations, which also employ a great number of people, have their headquarters in Oslo. Unemployment is low in the city and many of the lower level service jobs must be filled by foreign immigrants.

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