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Document 3:5 (2025-2026) / Published The Norwegian Labour and Welfare Administration’s (Nav) efforts to prevent labour market exits

Nav has not succeeded in decreasing labour market exits. An increasing number of people are exiting the labour market, and both sickness absence and the proportion receiving health-related benefits are on the rise.

Brief background

  • There is a stated objective to increase employment and activity levels while reducing the number of people on benefits.
  • The authorities have initiated a number of measures to reduce labour market exits. One such measure is the Inclusive Working Life Agreement (IA Agreement).
  • Many people find that health problems, inadequate accommodation, or other barriers make it difficult to participate in work over time.
  • In Norway, labour market exit is to a large extent associated with the extensive use of health-related benefits.

Overall assessment

High employment is crucial to ensure access to labour and tax revenues that make it possible to maintain welfare schemes. Currently, expenditure on health-related benefits accounts for 12.5 per cent of Norway’s National Budget.

In recent years, a growing share of the working-age population has exited the labour market. There has also been a rise in the proportion of individuals receiving health-related benefits. The objectives of lowering labour market exit and reducing sickness absence have not been achieved.

The investigation shows that the Ministry of Labour and Social Inclusion does not ensure that Nav has adequate follow-up of individuals on sick leave and recipients of work assessment allowance (AAP). There are significant deficiencies in the Norwegian Labour and Welfare Administration’s administrative procedures when granting all health-related benefits – sickness benefits, work assessment allowance, and disability benefits.

The National Audit Office of Norway considers this objectionable.

Conclusions

  • The objective of lowering labour market exit has not been achieved.
  • The proportion receiving health-related benefits has increased since 2019.
  • It can be questioned whether the Norwegian Labour and Welfare Administration adequately verifies the conditions of the National Insurance Act for entitlement to sickness benefits.
  • Individuals on sick leave receive insufficient follow-up from the Norwegian Labour and Welfare Administration.
  • The processing of applications for work assessment allowance varies between Nav offices and has become less stringent since 2018.
  • Many recipients of work assessment allowance do not participate in labour market measures.
  • The Norwegian Labour and Welfare Administration does not always have sufficient information about the working capacity of applicants for disability benefits.
  • The structures surrounding general practitioners’ work make it challenging for them to uphold their gatekeeping role in relation to the Norwegian National Insurance Scheme.

Recommendations

We recommend that the Norwegian Ministry of Labour and Social Inclusion

  • strengthen efforts to facilitate the Norwegian Labour and Welfare Administration’s capacity to identify which users are in need of sick leave follow-up
  • ensure that the Norwegian Labour and Welfare Administration systematically identifies and addresses deficiencies related to the automation of administrative procedures for sickness benefits
  • ensure improved information exchange and cooperation between the Norwegian Labour and Welfare Administration, employers, and general practitioners in sick leave follow-up
  • in cooperation with the health authorities, emphasise the legislative intent regarding the use of partial sick leave.

We also recommend that the Ministry

  • ensure that work assessment allowance to a greater extent becomes an active labour-oriented benefit, so that the working capacity of recipients is clarified
  • strengthen efforts to enhance the quality of application processing for health-related benefits, ensuring uniformity in processing and that individuals receive the benefits they are entitled to
  • ensure appropriate use of advising physicians within the Norwegian Labour and Welfare Administration, so that their medical expertise enhances the quality of the decision-making processes and follow-up of recipients of health-related benefits
  • investigate the gatekeeping role of general practitioners in relation to the Norwegian National Insurance Scheme.
Kategorier: Labour