Over half a million Norwegians received unemployment benefits since the pandemic started

Unemployed man NAVPhoto: Gorm Kallestad / NTB

Since March 12 last year, more than half a million unemployed and laid-off workers have received unemployment benefits or wage compensation in Norway, new figures from the Norwegian Labour and Welfare Administration (NAV) show.

During the year, the unemployment level has been three times as high as during the financial crisis. 

There have also been a number of temporary changes in the social security schemes, and infection control measures have hit some industries hard, the NAV stated in a press release.

The use of unemployment benefits skyrocketed when the corona crisis occurred, but the pandemic has so far affected the use of other social security schemes from the NAV far less than expected, a new NAV analysis shows.

“If we look at other NAV schemes, such as work clearance money and social assistance, the pandemic has had far less impact than expected,” NAV chief Hans Christian Holte noted.

Future outlook

The analysis provides an overview of the consequences of infection control measures on work-life and of developmental features that can be expected in the future.

The probability of applying for benefits will increase in the future when the unemployment benefit period comes to an end, according to Holte.

Some of those who became unemployed at the start of the corona crisis are entitled to unemployment benefits until October, while many of the corona-unemployed are entitled to unemployment benefits until the spring of 2022.

“In the longer term, the corona crisis may lead to more recipients of disability benefits and old-age pensions, but the level depends on how things go in the labor market,” Holte concluded.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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