2019 OECD Economic Surveys: Norway 2019

image of OECD Economic Surveys: Norway 2019

Wellbeing in Norway is high; GDP per capita is among the top-ranking countries and the country scores well in measures of inclusiveness. Several challenges must be addressed, however, if this good standing is to be sustained. The economy is vulnerable to trade risks. Also, though property markets and related credit appear to be heading for a soft landing, risks remain. Norway has substantial opportunities for more effective public spending remain, and exploiting these will become more important as fiscal space narrows. Productivity growth remains low, requiring attention to business policy.

Employment rates among young and middle age cohorts have declined, and despite some positive trends many among older cohorts retire early. This is eroding Norway’s otherwise good record of strong labour supply and socio-economic inclusiveness through jobs. Chapter 2 of this Survey looks at this, and other aspects of Norway’s labour market. Policy issues covered include sick leave compensation and disability benefit, the old-age pension’s role in early retirement, education and skills, and immigrant integration.




Maintaining high employment

Norway has a well-functioning labour market. It delivers high quality employment to many people. A majority of jobs in Norway are secure, workers are well remunerated, and job strain is low. Norway’s socio-economic model, including highly coordinated wage bargaining, delivers a compressed wage distribution and low inequality in incomes and wealth. Continued prudent fiscal management, supported by oil wealth, will be able to fund high quality support and assistance to the less fortunate well into the future.



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