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Employment Policy Convention, 1964 (No. 122) - Norway (RATIFICATION: 1966)

The Committee takes note of the supplementary information provided by the Government in light of the decision adopted by the Governing Body at its 338th session (June 2020). The Committee proceeded with the examination of the application of the Convention on the basis of the supplementary information received from the Government this year, as well as on the basis of the information at its disposal in 2019. The Committee notes the observations from the Norwegian Confederation of Trade Unions (LO) sent with the Government’s report.

Articles 1 and 2 of the Convention. Employment trends and measures to address the COVID-19 pandemic. The Committee notes that in reply to its previous request, the Government provides labour market data on the level and trends of employment, unemployment and underemployment from 2008 to 2019. The Government indicates that before the COVID-19 outbreak, the employment situation in Norway was characterized by a relatively high employment rate, in particular among women, low unemployment rate and low underemployment. The Committee notes that according to the statistics the total employment rate for workers aged 15–74, for 2019 was 67.8 per cent, compared to 67 per cent in 2018. While there was still a significant gender employment gap (70.5 per cent of men and 65.1 per cent of women are employed), this was smaller than that of other European countries. The employment rate of young workers (aged 15-24) was 50.4 per cent for men and 50.9 per cent for women in 2019. The Committee notes that the Government indicates that the COVID-19 crisis has had a major impact on the Norwegian economy and the labour market. The registered unemployment rate reached a historically high level in 2020 and the drop in employment has been considerable. The latest figures from the Labour Force Survey (LFS) show that employment has fallen by 1.5 percentage point from February to June 2020. The Committee requests the Government to continue to provide detailed statistics concerning the employment trends and their evolution, particularly taking into account the effects of the COVID-19 pandemic.

Labour market measures and COVID-19. The Committee notes the Government’s indication that in 2019 nearly 69,900 persons participated in active labour market measures on average per month. About 14,200 of them were unemployed and 52,700 were persons with disabilities. Youth, immigrants from non-EEA countries and long-term unemployed were given special priority for participation. The Government further indicates that a literature review on the impact of labour market measures in Norway carried out in 2019 concluded that labour market measures have a positive impact on employment. However, participation in the programmes reduce the participants time for job-search, causing longer unemployment spells. The impact of the measures differs both within measures and within groups of participants. National and international research shows that in general, labour market measures carried out in a regular work place yield better results than training measures in a sheltered environment. The figures for 2019 show that among those unemployed, 67 per cent found a job six months after the services ceased. For people with disabilities, 43 per cent were employed six months after the services ceased. The Government indicates that while these figures have been relatively stable for many years, they cannot be interpreted as the result of the assistance given by the Labour and Welfare Administration. The Government further adds that to compensate income losses due to the COVID-19 pandemic, a number of measures have been temporarily introduced in 2020. These measures include: (i) extensive changes to the unemployment benefits scheme, including lowering the eligibility criteria; (ii) increasing the level of compensation, and increasing the opportunities to take part in formal education whilst receiving unemployment benefits; (iii) additional amendments to the unemployment benefits scheme specific for temporarily laid-off workers (resulting in the state taking a larger part of the pay obligations and securing a higher level of compensation for the temporarily laid-off worker); (iv) new schemes to secure income to groups that normally are not covered by the existing unemployment benefit scheme (apprentices, self-employed and freelancers). Furthermore, the employers’ period for paying compensation for sick-leave as a result of the corona virus outbreak has been reduced. Self-employed and freelancers will get sick-leave compensation earlier. The quota for care allowance is increased and the employers’ compensation period for care allowances has been reduced. Furthermore, the maximum periods to access some allowances have been prolonged (for example, the temporary benefits work assessment allowance (AAP) and the Qualification Programme). The Government has introduced a temporary salary compensation scheme for employers that bring back to work those employees who had been laid off as a result of the situation. The Committee requests the Government to continue to provide information on the labour market measures taken to address and mitigate the negative impact of the COVID-19 pandemic. The Government is also requested to provide statistics on the impact of those measures on job retention and employment creation including for persons with disabilities.

Reform of the Labour and Welfare Administration (NAV). Concerning the merging of the Public Employment Services (PES), the National Social Insurance Administration (NSIA) and the municipal social cash benefit offices, the Government reports that there is a continuous ambition to improve the efficiency of the Labour and Welfare Administration, particularly to reallocate resources to benefit those most in need. Measures are currently being taken to improve the use of information and communication technology (ICT) with the digitalization and automation in the applications for and management of benefits. Furthermore, measures are taken to improve skills and competencies of staff. The Government adds that in the framework of a local government reform, the number of regional offices was reduced from 19 to 12 offices in 2019, and there are now 326 Nav-offices. The Government further reports that the rise in unemployment and the number of temporarily laid-off workers due to the COVID-19 outbreak has put the Labour and Welfare Administration under substantial pressure. From 1 January to 1 September 2020 the agency received 561 000 applications for unemployment benefits, which is five times as many as those received in the same period in 2019. The Committee requests the Government to continue to provide information on the activities carried out by the Labour and Welfare Administration (NAV) and their impact on the promotion of full, productive and freely chosen employment. The Government is requested to indicate the specific measures adopted by the NAV to address the challenges posed by the COVID-19 pandemic.

Particular categories of workers vulnerable to decent work deficits. The Committee requested the Government to provide detailed information, including statistical data, on the impact of the employment measures implemented under the Inclusive Work Life Agreement (IW agreement) and other measures targeting specific categories of workers vulnerable to decent work deficits, including women, young persons, older workers, persons with disabilities and migrant workers, as well as rural workers and those in the informal economy. It also requested the Government to provide information on measures taken or envisaged to foster gender parity in employment in all age groups and across all populations, particularly among members of disadvantaged groups. The Government indicates that the IW agreement, which exists since 2001, was re-negotiated in 2018. A revised 4-year agreement has been in force as of January 2019. The agreement aims for a 10 per cent reduction in sick leave and for a reduction in withdrawal from work life. The Committee notes in this regard that LO emphasizes that in the period from 2001 to 2018 there has been a reduction of 13 per cent in sick leaves, although the original target was 20 per cent, a target reached only by six industries. The Committee further notes the disaggregated statistical data provided by the Government on the employment situation of young persons, older workers, persons with disabilities and immigrants for the period 2008-2019. The Government further indicates that the labour market measures are universal and that access to the different programmes is based on an individual work ability assessment. In general, the measures are not targeted to specific disadvantaged groups, although youth, immigrants from non-EEA countries and long-term unemployed are given special priority for participation. The Government adds that according to the Labour force survey, the employment rate of persons with disabilities was of 40.6 per cent in the second quarter of 2020, which shows a significant drop for 2020. Besides, the reduction is more pronounced than that of the total population which shows that the gap in employment between the total population and persons with disabilities has increased. The Committee notes that in the report “Beijing+25, the situation of women and girls in Norway: development, progress and measures 2014-2019”, the Government provides information concerning the measures taken to promote women full-time employment and greater participation in the labour market which include, for example: the mapping by employers of the use of involuntary part-time employment; improving the organization of future working hours; and ensuring the preferential right of part-time employees (mainly women) to an extended position. The report also enumerates the measures adopted to address traditional gender segregation in the labour market and in education as well as measures taken to foster migrant women job opportunities. The Committee requests the Government to continue to provide detailed information, including statistical data, on the impact of the employment measures on specific categories of workers vulnerable to decent work deficits, including women, young persons, older workers, persons with disabilities and migrant workers as well as any measure aimed at fostering gender parity. The Government is requested to provide specific information on the particular situation and challenges faced by workers belonging to these groups in accessing and remaining in the labour market due to the COVID-19 pandemic and the measures adopted to address them.