WAPES, Moscow Russia 17-18 September 2014

”Models of Public Employment Service:centralized and decentralized”

by Mr Yngvar ÅsholtDirector of Research and Analysis, The Norwegian Labour and Welfare Service

NAV, 20.04.23 Side 2

Norway - some basic numbers

Small country – Population: 5,038,300– Birth rate 1.9

Low unemployment rate– 2.9 % (August 2014)

High labour market participation– Not least due to:

– The high participation among women– People live longer.

Bergen263.762

Stavanger127.506

Trondheim176.348

Tromsø69.116

Kristiansand83.243

Oslo613.285

NAV, 20.04.23 Side 3

The Norwegian challenge

NAV, 20.04.23 Side 4

Organisational models discussed

Government vs municipality dimension

NAV, 20.04.23 Side 5

Disadvantages with the municipality in charge of the responsibility

– Lack of control and priorities at national level

– Lack of overview in the national labour market

– Interest and role conflict across municipal boundaries

– Possibility of low priority of labour market focus

– Lack of opportunity for “big scale” thinking

– Bottlenecks at national level related to specialized tasks

– Insufficient flexibility to meet rapid changes

– Possibility for less focus on the individual user's needs

– Less equal treatment for citizens throughout the country.

A municipal model predicts changes in the municipal structure.

NAV, 20.04.23 Side 6

Disadvantages with one huge government organisation

– Risk of unclear signals from the Ministry level

– Often turning to the easiest measurable in the follow up work: administration

– Usually focus on areas where it can demonstrate results in short term

– Pressure from users to ensure economy

– Will have trouble in changing focus and dimension in accordance with changing circumstances: policy, development in labour market

– One door in, but into a "centre" where the user meet many new doors?

– Difficult to reconcile both breadth and expertise in one organisation

– Vulnerable to the development of subcultures or "agencies within the administration" - at all levels.

Expenses related to development would be substantial!

NAV, 20.04.23 Side 7

This is NAV

• Social security offices• Special units• About 9 000 employees

• PES local offices• Special units• about 3 500 employees

• Social part of municipality • about 4 000 employees

Social Insurance (goverment)

Public Employment Services(government)

Social service (municipality)

2006 – 2010 build partnership with all municipalities in Norway.

NAV, 20.04.23 Side 8

Organisation model NAV – simplified

456 local offices (joint governmental and municipal administration present

in all municipalities and urban districts)

Ministry

NAV Directorate of Labour and Welfare

428Municipalities

Servicesoperations

Benefitsoperations

Accounting operations

NAV, 20.04.23 Side 9

A) State and municipal partnership at local level; the role and tasks of NAV local office; one door-policy

The NAV-office is based on an equal partnership between state and local authorities. The office will offer one door for NAV’s services

A general agreement between The Ministry of Labour and Social Inclusion and The Norwegian Association of Local and Regional Authorities constitutes the framework for local cooperation for all local authorities

Employees within both central and local authorities will receive training and education, and will work with the same tasks

The local NAV-office offer services on behalf of both central and local authorities, but in a way that makes them seem like one and the same.

NAV, 20.04.23 Side 10

Challenges through the transit period

Turbulent times– logistical difficulties, old ICT systems, cultural

challenges, negative headlines in the News…

Experienced what is usual during implementations

–reforms often don’t turn out according to what they were meant to, are usually shaped and reshaped through the implementation face, and follow a pattern where ‘old’ problems are brought into the new organisation.

NAV, 20.04.23 Side 11

Current situation

The users

The organisation

The service

– Unsatisfied with the information received– Need for better cooperation between offices

responsible for services and for benefits– Customer-satisfaction is slightly better than

before the reform

– Has become huge– The “one-stop-shop” with only door for the

users is still leading to more and other doors behind the first door

– More synchronized service for users who previously would receive help from two or three organisations

– Poorer to some groups who previously received service from only one organisation eg the unemployed.

We see a “Light in the tunnel” -the transition turbulence is about to calm down!

NAV, 20.04.23 Side 12

Prospects of further developments

We believe: •our organisational model is the right for us •we are shaped for meeting future challenges!

We believe: •our organisational model is the right for us •we are shaped for meeting future challenges!