Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

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

Other comments on C122

Observation

Direct Request

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Articles 1 and 2 of the Convention. Active labour market measures. The Committee notes the information contained in the Government’s report received in October 2010, which includes replies to its 2009 direct request. The Government reports that the main target for its economic policy is full employment and there has been broad political consensus on such a target for many years. In the current recession, the aim of the fiscal policy has been to keep the employment level high and to counteract the increasing unemployment. The Government further reports that it has conducted an expansionary fiscal policy in 2009 and 2010. Projects in the building and construction sector have been given priority to alleviate the strong fall in demand in this sector. In reply to the Committee’s previous comments, the Government indicates that it has a long history of coordinated economic policy and has taken benefit of this tradition to tackle the economic downturn following the global economic and financial crisis. The Government indicates that it has conducted an active economic policy and strengthened the labour market policy by: increasing the aggregated demand through an expansionary fiscal policy; easing the supply of liquidity in the financial markets; increasing administrative resources to the public employment service; increasing resources allocated to labour market measures; and temporarily easing the rules for eligibility of unemployment benefits for temporary lay-offs. Furthermore, the Government reports that employers’ and workers’ organizations have negotiated lower wage growth from 6.3 per cent in 2008, to 4.5 per cent in 2009, and an increase of 3.25 per cent (expected) in 2010. The Committee notes that, despite lower activity, many companies have used temporary lay-offs or shorter work weeks instead of downscaling their workforce, which has reduced the increase in unemployment. The Committee invites the Government to continue to provide information in its next report on employment measures adopted and their outcomes with the objective of maintaining full employment.

Labour market data and review mechanisms. The Committee notes the increase in the unemployment rate from 2.5 per cent in 2007, to 3.5 per cent in the first quarter of 2010. The unemployment rate for men increased from 2.6 per cent in 2007, to 3.6 per cent in 2009, and for women it increased from 2.5 per cent to 2.6 per cent in the same period. As for the employment rate, it fell from 72 per cent in 2008 to 69 per cent in the first quarter of 2010. The Committee further notes that the Ministry of Labour and the Labour and Welfare Administration are initiating periodical evaluations and reviews to learn about the effect of participation in a labour market programme on the transition to employment. The normal proceeding is to have an evaluation of an experimental programme, and eventually change the framework, before making it part of the general menu of labour market programmes. The Committee invites the Government to provide information in its next report on the involvement of the social partners in the review and evaluation process of labour market measures.

Norwegian Labour and Welfare Service (NAV) reform. With regard to the merger of the employment and national insurance services creating a new entity called the NAV, the Government reports that the NAV reform will be extensively examined throughout its implementation. Several researchers are working on this subject with government funding and funding from the Research Council of Norway. The Committee notes the research referred to by the Government in its report indicating that the multi-level partnership model behind the NAV one-stop shops is an organizational innovation in the Norwegian political-administrative system. It purports to combine ministerial responsibility and sector specialization on the one hand and local self-government and territorial specialization on the other. Since the beginning of its implementation at the end of 2006, the NAV reform has increasingly met criticism for its difficulties in dealing with the increasing number of applications for unemployment benefits due to the global economic crisis. The Government indicates that evaluations are still some years ahead due to the magnitude of the NAV reform and the fact that the reform is not yet fully implemented. The Committee welcomes the ongoing evaluation of the impact of the NAV reform and invites the Government to continue providing information on this matter.

Vulnerable categories of workers. The Government reports that young persons experienced the strongest decline in the employment rate during the 2008–10 period. Older workers also saw a decline in the employment rate. The Committee notes that the unemployment rate for immigrants is approximately three times higher than for the native population. The Government indicates that it conducts an active policy for integrating vulnerable categories of workers into the labour market. Resources in this area have increased in 2009 and 2010. Youths and immigrants are given priority in the form of participation in labour market programmes. The Government also indicates that budget financing measures for unemployed persons and persons with disabilities were merged in order to reduce the barriers of services between different target groups with the aim to give services better suited to individual needs. The total number of active labour market places for all target groups has increased from about 66,000 in 2008 to 71,000 in 2009, and close to 75 per cent of measures are used by persons with disabilities or with reduced work capacity. The Committee invites the Government to continue to provide information and data on labour market measures regarding young persons, persons with disabilities, immigrants, and other vulnerable categories of workers.