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.
SPECIAL FEATURE: EMPLOYMENT
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Key policy insights
Norway has among the highest standards of living in the world. Scores across most indicators of wellbeing rank well compared with other countries (Figure 1.1, Panel A). The high rankings in subjective wellbeing along with jobs and earnings, and low inequality (Figure 1.1, Panel B) reflect broad success in achieving Nordic-model societal goals. GDP per capita, at around USD 65 000 annually (Figure 1.2), exceeds that in most other advanced countries. However, education and skills outcomes notably falls short of top performers and this is among the issues tackled in this Survey’s in-depth chapter on labour market issues.