Conservatives propose labor policy overhaul in Norway to boost employment

For the first time since the pandemic, the leader of the Conservative Party, Erna Solberg, and the head of the Norwegian Business and Industry (NHO), Ole Erik Almlid, have made a joint political proposal. During a walk in Frogner Park, they announced plans to overturn two major aspects of the current government’s labor policies.

The Conservatives, with strong backing from NHO, aim to:

1. Lower barriers to entering the workforce by introducing a general allowance for hiring temporary staff within a strict regulatory framework.
2. Enable businesses to hire additional labor as needed, aligning with the regulations that were in place in 2019.

Currently, about 20% of working-age individuals in Norway are outside of employment or education, totaling nearly 700,000 people. Solberg emphasizes the need for any government to address these challenges. She stated that existing barriers imposed by the government on labor hiring should be relaxed, highlighting the importance of temporary employment to handle peak demands and trial periods for new hires.

The ongoing government, led by Prime Minister Jonas Gahr Støre, had moved quickly to eliminate general temporary employment permissions and tightened regulations on labor hiring after coming to power in 2021. Solberg and Almlid argue that liberalizing these rules could facilitate easier employment access for those currently outside the job market.

As part of their proposals, the Conservatives plan to implement a range of measures aimed at increasing job opportunities, including easing employment regulations for younger individuals and incentivizing businesses to reduce long-term absence from work. These changes are positioned as essential for enhancing productivity in the Norwegian economy.

However, the current government and labor unions have criticized these proposals, raising concerns about potential drawbacks to job security and the instability of temporary work.