Erna Solberg, in Berlin on her first overseas trip as leader, said that there was a risk unemployment could create a "lost generation" in Europe.
"If we allow it to create fertile ground for anti-immigration, Islamophobic, jihadist and other extremist groups, it will lead to a lot of conflict in Europe," she warned.
"If we take radicalization seriously, intelligence is important, but most important of all is to create a sense of belonging. We have to limit youth unemployment, get people into work, get the youth to participate."
Solberg decision to visit Germany underlines what she has in common with Merkel -- both are women who have risen to lead their countries' leading centre-right parties, and both represent countries that have remained relatively affluent throughout Europe's crisis.
Merkel officially greeted Solberg close to Berlin’s Brandenburger Gate, apologizing for the pouring rain.
“I’m used to this from Bergen,” Solberg replied, according to NRK.
The two held a 90-minute working lunch, discussing energy cooperation, the economy, the EU and US surveillance, before holding a press conference.