Title: Norwegian Labour and Welfare Policy. Enhancing the Labour Market Prospects for the Occupationally Disabled and for Employees With Health Problems Erik Oftedal Director Directorate of Labour and Welfare Norway
1Norwegian Labour and Welfare Policy. Enhancing
the Labour Market Prospects for the
Occupationally Disabled and for Employees With
Health ProblemsErik OftedalDirectorDirectorate
of Labour and WelfareNorway
2Agenda
- Challenges in Norwegian Labour and Welfare policy
- The Norwegian way of enhancing labour market
prospects for vulnarable groups - What if we succeed
3Brief information about Norway
- Population 4 640 200
- 79 active in work
- Women 76
- Men 83
- The majority is employed in
- Public sector
- Private service sector
- Unemployment rate 2.8 .
4Fewer to share the costs
1967 3,9
2003 2,6
2050 1,6
A steady decrease in the number of people in the
work force per pensioner
5Macroeconomic and labour market situation is very
good
- High material income and wealth
- Steady growth (3- 3 ½ )
- High and stable labour force participation (80)
- Low unemployment (2-3 )
- Low inflation (1-2 )
- Low real interest rates (2-3 )
- Very strong public finances
6The other sides of the medal
- It affords a strong back to bear good days
- How to keep up with intergenerationally well
balanced economy and welfare? - An ageing population
- Expected increase of expenditure towards health
and care services as well as pensions. - Very high and increasing absence due to sickess
and incidence and prevalence of disability - 700.000 persons ¼ of the grown-up population
below pension age receive an income support on
the grounds of sickness, health problems or
disability
7Challenges in Norwegian welfare Norway today
- In the work force At the outskirts of the work
force, receiving benefits - 2 400 000
- 298 000 disability pension
- 28 000 temporary disability pension
- 60 000 social welfare
- 120 000 sickness benefit
- 66 000 occupational rehabilitation
- 58 000 unemployment benefit
- 44 000 rehabilitation benefit
- 12 000 transitional benefit
- 7 400 individual benefit
- 2 800 severance benefit
- 2 400 severance pay
8Net transfers according to age in 2004
9Increasing number of income security
beneficiaries
Social welfare Daily cash benefit Sickness
benefit Rehabilitation allowance Vocational
rehabilitation allowance Disability benefits
10In an OECD context Norway differs too
of employees absent on account of sickness
Source EULFS.
11Few disability beneficiaries return to the labour
market
of the disability beneficiaries that return to
the labour market
Note Data refer to 2004 for Norway, Poland and
Switzerland and 1999 for the other countries
Source National Labour Force Surveys.
12The number of disability beneficiaries the
double of OECD-average
of work-age population
and we spend the double of OECD-average on
sickness benefit and disability
Source National insurance authorities NIA
(Norway), IV (Switzerland) and ZUS (Poland).
13The Norwegian path to increased welfare and a
more inclusive labour market
- The trend has to be changed
- The strategy
- Inclusive Workplaces a tripartite agreement
- The NAV reform a new state agency for Work and
Welfare - The White Paper on Work, Welfare and Inclusion
- A reform of the pension system presented by Mr.
Christensen yesterday
14Inclusive Workplaces a tripartite agreement
- Agreement 2001-2005 between the Government and
the Social partners prolonged 2006-2009. - The goals
- Reduce sickness abscence by 20 compared to 2001
- Increase the employment rate of disabled persons
- Increase the average, real retirement age
15Inclusive Workplaces cont.
- A lot of good initiatives and work locally
- Local work is based on cooperation agreements
signed directly between the enterprises and NAV - New proposals 2007 ..
16A new model for intensified follow-up on sick
leave
- Employer and employee are required to (according
to the Working Environment Act) - agree upon a mutually binding follow-up plan at
the latest 6 weeks after the onset of sick-leave - arrange a dialogue-meeting within 12 weeks of
the onset of sick-leave - The doctor is required by law to participate in
the meeting - if desired by the employee
- NAVs role is to (according to the National
Insurance Act) - check the possibilities of and attempts at work
related activity, by controlling the sickness
certificate and the follow-up plan - arrange a new dialogue meeting with the employer
and employee within 6 months, possibly with the
doctor participating too - effectuate economic reimbursements and benefits
- coordinate access to relevant public services
- Company health service, union representatives,
safety deputies should participate too
17A wave of reorganising the Work and Welfare
administrations
- A dominating trend in many European countries
- Most outspoken in Northern Europe
- Great Britain, The Netherlands, Germany, Denmark,
Finland - The Norwegian reform more far reaching
18A New Employment and Welfare Administration
- Merger
- The Public Employment Service
- The National Insurance Service and
- The Municipal Social Welfare Administration
- The aims
- Better coordination of benefits
- More effective and work-oriented casework
- More user-oriented services and participation
- Gradual implementation
- Central agencies in 2006
- Regional and local offices 2006-2009
19NAV unifies the services
National Insurance Service (state)
Social welfare (municipality)
Aetat Employment Service(state)
- Social welfare office in
- almost every municipality
- Around 4 000 employees
- National Insurance Administration
- County office
- National insurance office
- Special units
- Around 9 000 employees
- Aetat Directorate of Labour
- Aetat county
- Aetat local
- Special units
- Around 3 500 employees
20The goals of the NAV-reform
- More people employed and active
- One door for all the users of NAV common
access to combined and parallel services - Distinct work focus for frontline services
- Steady course from passivity to activity
- Time for more and better follow up and a higher
degree of individual adjustments - Distinct division between production and work
related processes - Increased use of self service
- Simple requests handled in a simple manner
- Active user participation
21New interaction between state and local authority
- The NAV office is based on an equal partnership
between state and local authorities. The office
will offer one door to all of NAVs services. - A general agreement between The Ministry of
Labour and Social Inclusion and The Norwegian
Association of Local and Regional Authorities
constitutes the framework for local cooperation
for all local authorities. - Employees within both central and local
authorities will receive training and education,
and will work with the same tasks. - The local NAV office will offer services on
behalf of both central and local authorities, but
in a way that makes them seem like one and the
same.
22Organizational reform Not
only a new wrapping
- Motto
- Everyone is unique and has unique service and
support needs - Focus on functioning, abilities and possibilities
not diagnosis - Symmetry between support/services and individual
obligations - Services tailored to INDIVIDUAL needs not the
target group, type of income support etc.
23Decision making close to the public
- All follow up should take place in the local NAV
office main focus on close collaboration with
the individual as far as work and activity are
concerned - The NAV office decides which tools and measures
to apply - The NAV office uses their own judgement as far as
possible within the framework of rules and
regulations. The offices opinion should be a
leading factor when deciding upon the case by
special units - activity-requirement, conditions that have to be
met, etc. - The NAV offices use individual plans as a tool
based on a.o. the ability to work and the
agreement on activity - The plan plays a guiding role when assessed by a
special unit - The NAV office coordinates services to the public
- The NAV offices must be credible and reliable as
far as follow up and guidance are concerned
24White Paper on Work, Welfare and Inclusion
- Preventive and facilitative measures at the
workplace - New and better coordinated work-oriented measures
- Reformed temporary income security within the NIS
- A new qualification programme outside the NIS
- Supplementary measures
- for disabled persons
- for immigrants
- to combat poverty
25Tools todays practice
Sickness benefit
Medical measures
Rehabilitation allowance
Primarily medical measures
All labour market measures
Vocational rehabilitation allowance
Temporary disability benefit
No demand for active measures
Unemployment benefit
Status depending on labour market measures
Social welfare
Random offers of measures
26Tools future practice
Follow up according to needs Assessment Follow
up Non-temporary wage subsidies Long term adapted
working environment Assisted work Labour market
training Ordinary education Motivation
measures Wage subsidies Medical
rehabilitation Low threshold alternative Economic
counselling Close individual follow
up Qualification programme
Evaluation of work ability
Tools should be applied freely, without regard to
type of benefit/focus groups
27Work ability assessment
- A new, integrated system for work ability
assessment is under way - Today A number of concepts, methods and tools
are in use within NAV - It will be the point of departure for formulating
individual action plans - A move from the focus on diagnosis/disability to
a focus on work-related abilities and
possibilities
28Assesment of work ability-
29Developing and renewing work-related measures and
services
- More flexible and individually-adapted use of all
types of measures and services provided by the
new employment and welfare administration - Extended use of wage subsidies through
implementing trial projects involving wage
subsidies that are not of a limited duration - Strengthening measures to improve fundamental
knowledge and skills on the part of job-seekers
who need this
30Developing and renewing work-related measures and
services cont.
- Establishing and wider access to new and better
clarification measures for users who do not
currently have access to this - Based upon the situation and needs of the
individual - Will benefit
- the long-term unemployed
- young people and
- groups of immigrants
- Establishing and wider access to new and better
follow-up measures for users who do not
currently have access to this - Based upon the situation and needs of the
individual - Will benefit
- the long-term unemployed
- young people and
- groups of immigrants
31Qualification programme
- A new qualification programme proposed
established within NAV Local Services at the end
of 2007 - Target group
- persons with no or very limited benefits from the
National Insurance Scheme - mainly persons living off municipal social
welfare - Participation in the qualification programme will
entitle to qualification benefits granted as
standard amounts
32Qualification programme cont
- The objective of the programme is to help
participants to get work by making the effort
more general, systematic and binding in regard to
both the participants and the public services - The programme can consist of several kinds of
measures based on individual needs, e.g - Labour market measures
- Different kinds of training
- Motivation
- The municipial part of the local office will be
responsible for implementing these programmes
but the programme can consist of all measures and
services in accordance with individual needs
33Temporary Income Security Benefits at present
and in the future
Today
Future
34Why a Reformed Temporary Income Security Benefit?
- A single benefit to support through the whole
period, enabling the recipient to focus on
job-related activities - Merging/replacing the 3 existing medical and
vocational rehabilitation and invalidity benefits
(of limited duration) will permit a more flexible
use of means/measures across groups of
recipients - Harmonizing and simplifying the present rules,
facilitates a more effective welfare system - Introducing the possibility to allocate resources
from the administration of benefit payments
towards follow-up activities and active measures
352010
- 470 NAV offices established in all
municipalities, several in larger cities - 12 administration units enhanced
- 20 new administration units established
- 5 new pension units established
362010
- Specialisation and automation within the fields
of information, administrative support and
payment - Transfer of 1550 employees from local offices to
special units - Health services transferred from The Labour and
Welfare Service to The Health and Social Service - New tools and a new policy on labour, welfare and
inclusion - Modernised national insurance scheme
- Applied measures towards improving the competence
of the employees
37What if we succeed?
- Possible positive results for individuals,
society, public economy and finances and for the
public service and administration - Some examples
- 1 person for 5 years longer in paid employment
approx 500.000 NOK higher life income - 3.000 persons for 5 years longer in paid
employment 3 billion NOK society output - 30.000 fewer disability pensioners
- (10 ) 20 billion NOK reduction of the budget
costs 3 of total state budget