Taler av øvrig politisk ledelse - ILOS 5. Europeiske regionalkonferanse Warszawa 25.09.1995

Statssekretær Erik Orskaug

Kommunal- og arbeidsdepartementet

ILOS 5. Europeiske regionalkonferanse Warszawa 25.09.1995

Mr. President,

First I would like to congratulate You, and the other officers on Your election. This regional conference for Europe takes place at a time when there is a great need for contact and cooperation between the different regions of Europe - not least in the areas of labour and employment issues.

Unemployment has become the predominant economic and social challenge for Europe in the 1990's. I therefore welcome the ILO-initiative to discuss our common challenge number one. The report of the Director General focuses on very interesting and central issues. And it also demonstrates the sad fact that unemployment rates still are high in most countries of our region. My country has been able to keep unemployment at a level among the lowest in Europe - although the rate is still far too high. I would like to share with you some of the measures that have proven to be successful in my country.

The level of unemployment in Norway peaked in 1993 at some 6 per cent of the labour force, and is now expected to fall below 5 per cent during 1995. Youth unemployment and an increase in long-term unemployment, however, suggest a structural component in unemployment, which is given special attention.

In order to reverse the development, with growing unemployment, my Government in 1993 proposed a comprehensive economic strategy for the 1990's. This was based on a report from the National Employment Commission, with representatives from all the political parties in Parliament, and the social partners.

The Government's Policy for boosting employment and reducing unemployment has given a number of positive results. Employment increased by 1,5 per cent in 1994, and this development is expected to continue in 1995 with an increase of about 2 per cent.

The objectives of the Government is to reduce unemployment further in coming years. Top priority is given to active measures rather than passive income maintenance schemes. This requires:

• A strong and efficient public labour market service designed to promote mobility and remove bottle necks in the labour market
• That labour market training is preferred to creation of temporary public employment.
• Strengthening of the placement services
• High level of active measures directed towards exposed groups, especially youth and long-term unemployed
• Mobilisation of labour supply through early intervention towards the unemployed and integration measures towards the disabled
• That unemployment benefits are strictly reserved for those who are entitled

The Norwegian approach builds on an active governmental budget policy, with sound growth- oriented macroeconomic policies, and income policy cooperation with the social partners. The levels of employment and unemployment depend to a large extent on institutional and structural conditions such as, how wages are determined, how young people are educated and trained, and the policies towards unemployed people.

A strong and effective public employment service is an important part of the active labour market policy. In Norway the public employment offices have combined functions of benefit administration, placement and counselling of job-seekers and allocation of the unemployed to labour market programmes. The integrated system makes it possible to combine the control of benefit entitlements with the necessary contact with benefit claimants, to avoid that they loose contact with the labour market and drift into the status of being discouraged workers.

To fight unemployment the Government has also strengthened two categories of measures:

1. The first is ordinary education and vocational training. As of 1994 all young people between 16 and 19 years have a statutory right to three years upper secondary education. Over a six years period we have also increased the number of available places in higher education by 60 per cent.
2. The second is a labour market policy based on training and self-activation.

In Norway, all employees are covered by a compulsory unemployment benefit scheme which is part of the National Insurance Scheme. Work experience is required to be entitled to benefits.

Furthermore there are requirements that the unemployed must be willing to accept suitable work or to participate in a labour market programme in order to continue to be entitled to unemployment benefits.

When unemployment was at highest, 3 per cent of the labour force or about 1/3 of the unemployed took part in an active labour market scheme. Through this active labour market policy we are able to:

• Improve the skills and the jobbopportunities of the unemployed
• Assist employers in recruiting labour with relevant qualifications
• Increase the total knowledge in the society and increase the future production and income potential
• Give new possibilities for unemployed with limited or without fulfilled formal education

Estimates from OECD indicates that the active labour market policies in Norway may have led to a lowering of the long-term unemployment rate by as much as 2,5 percentage points.

Mr. President,

Bringing about full employment require the active involvement of the social partners. Strategies to increase employment should take working conditions and social aspects into account, and with the social partners as active partners, this will often secure better and more balanced solutions.

In Norway the involvement of the social partners takes place at several levels.

1. First I would like to point to the fact that we have for a number of years pursued consistent wage and income policies in cooperation with the social partners, and thus achieving quite low nominal price and cost increases, which is a prerequisite for employment growth.
2. Secondly, the social partners participated in the Norwegian Employment Commission which laid the foundation for the present labour market policies.
3. Thirdly the social partners play a role in the implementation of labour market policies through representation on the Board of the Directorate of Labour. The social partners also participate in the actual running of some of the labour market programmes and in job-creation schemes in the public sector and non-profit organizations. Furthermore they participate in regional labour market councils, together with regional authorities. The aim of the councils is to contribute to the coordination of training and education at the regional level , with the view of meeting the needs of the unemployed as well as that of local enterprises.

In conclusion, Mr. President, ILO will have a central role to play in the fields of employment, both in Europe and in the rest of the world. I think the report of the Director General shows us that a genuine tripartite dialogue on regional and country level is of the utmost importance if we shall succeed in solving the problems of unemployment.

Thank You, Mr. President