Fiscal Analysis

Norway: What Labour Market Exclusion Costs the State

What it costs the state in disability and sickness benefits when people are kept out of work, compared across European countries.

€20.7bn
Spent on disability and sickness benefits
4.5%
Benefit Expenditure As share of GDP

Country Profile

As share of GDP4.5% of GDP

Direct benefit payments

Nav årsrapport 2024, tabell 3 — uføretrygd, sykepenger and arbeidsavklaringspenger paid in 2024 · 2024

€20.7bn

→ Disability pension

Nav årsrapport 2024 — uføretrygd (NOK 125.3bn) · 2024

€10.8bn

→ Sickness benefit

Nav årsrapport 2024 — sykepenger paid by Nav (NOK 68.1bn; excludes the employer-paid period) · 2024

€5.9bn

Local currency: NOK 240.3bn

Per working-age adult

€5,734

Context

Covers uføretrygd (disability benefit, NOK 125.3bn), sykepenger (sickness benefit, NOK 68.1bn) and arbeidsavklaringspenger (work assessment allowance, NOK 46.9bn). In December 2024, 373,036 people received uføretrygd and 158,539 received arbeidsavklaringspenger.

Methodology

Public cash benefits for disability and sickness only. Lost tax revenue, healthcare, social care and employment-programme costs are not included. Converted at the Eurostat 2024 average rate (NOK 11.629 per EUR). Share of GDP uses Eurostat GDP for 2024; per working-age adult means per person aged 15–64 (Eurostat, 1 January 2024).

In Practice

A real organisation putting this into practice.

🇳🇴IT Consulting · Norway

The world's largest autistic-majority company started in Oslo

79% of 552 staff are autistic · 266 client companies in 2023

Learn more
🇳🇴Employer Organisation · Norway

Norway's largest business confederation ran an inclusion programme with an 80% job-offer rate

80% of internship participants offered a job · covers 22,000+ NHO member companies

Learn more
See all inclusion success stories →