NAV in 2017 facts and figures

NAV in 2017 facts and figures

Table of contents NAV at a glance The labour market in Norway NAV benefits in 2017 Health-related benefits Channels used last year Assistive technology NAV s work-oriented follow-up Trends Digitalisation and developments in NAV

This is NAV 1/3 of Norway s national budget Services to 2.8 million people 60 different types of support and benefits Work-oriented services Social services

Organisation in 2017 Directorate of Labour and Welfare Labour and Service Department Benefits Administration Accounting Department Partnerships with 426 municipalities NAV County, incl. special units For example, ALS, ARK NAV offices in municipalities and urban districts NAV Call and Service Centre NAV Work and Benefits NAV Family Benefits and and Pensions NAV Control NAV Appeals NAV Collection NAV Accounting Pensions NAV Accounting Benefits NAV Accounting Services NAV Assistive Technology and Adaptations

NAV s priorities MORE PEOPLE IN WORK BETTER SERVICE USER INTERACTION INCREASED COMPETENCE

What did our users think about us in 2017? 0 1 2 3 4 5 6 I am certain that NAV ensures my rights 4.2 4.1 I am met with respect when I approach NAV 4.7 4.7 How great is your confidence in NAV s work overall? 4 4.1 To which degree do you experience that NAV meets your expectations? 4.3 4.2 2016 2017

NAV BENEFITS IN 2017

NOK 480 billion goes to: Labour market schemes: NOK 9.0 billion Cash-for-care benefit: NOK 1.6 billion NAV Unemployment benefit: NOK 14.0 billion Child benefit: NOK 15.0 billion Other: NOK 18.8 billion National budget 2017 Parental benefit: NOK 19.7 billion Health-related reimbursements Work assessment allowance (AAP) NOK 33.8 billion NOK 34.8 billion NOK 39.8 billion NOK 211.2 billion Old-age pension Sickness benefit NOK 83.1 billion Disability benefit In addition, NAV paid out NOK 25.5 billion on behalf of the Norwegian Public Service Pension Fund. Thus, NAV paid a total amount of NOK 505.8 billion in 2017.

NAV is there from the cradle to the grave

We process approx. 150,000 cases each month Sickness benefit Disability benefit Supplemental benefits Pension, Infotrygd Membership Cash-for-care benefit Complaints/appeal, Arena Assistive techonology Basic benefit and assistance Funeral grant Single parents Unemployment benefit Parental benefit area Child s illness Child benefit Child maintenance Work assessment allowance Other benefits Old-age pension

Rejection rate for benefits 45% 40% 35% 30% 25% 20% 15% 10% 5% 2016 2017 0% * For sickness benefit, there are no statistics on granted applications and rejections, as the decision solution Infotrygd is built up differently than for the other benefits, for reasons of efficiency in the processing of applications for sickness benefit. * 'Total all benefits' is calculated in on the basis of all the benefits in NAV

Benefit fraud in 2017 Amount reported (in NOK millions) Number of cases reported* 140 121 120 Unemployment benefit 108 111 800 100 80 98 Work assessment allowance (AAP) 600 60 40 20 65 42 400 200 0 2015 2016 2017 86% of all cases reported resulted in prosecution** 0 2015 2016 2017 Unemployment benefit recipients Recipients of work assessment allowance (AAP) * Note. the number of reports does not correspond to the number of people, since some people are reported for fraud linked to multiple benefits ** Punishment may be an unconditional prison sentence, a partially suspended prison sentence, a suspended prison sentence, community service, fines, etc. The statistics show the number of cases of benefit fraud reported and the amount of money concerned in Norway, including accomplices.

Organised benefit fraud and work-related crime Efforts to combat work-related crime are important both to protect the welfare schemes and ensure a safe, stable labour market. In 2017 NAV reported benefit fraud in connection with work-related crime in the order of NOK 35.5 million Work-related crime is in violation of Norwegian laws on wage and working conditions, social security, tax and crime.

Organised benefit fraud and work-related crime Increased collaboration with the Norwegian Tax Administration, the Norwegian Labour Inspection Authority and the police. Bodø Seven joint work-related crime centres in Norway. Trondheim Bergen Stavanger Oslo Kristiansand Tønsberg

Old-age pension and work 49% Half of the new pensioners worked until they started drawing their pension Women Average retirement age: 66 years 41% in work before drawing pension 31% on disability benefit before drawing pension Men Average retirement age: 65 years 58% in work before drawing pension 20% on disability benefit before drawing pension Figures as per March 2017.

Social assistance paid out (support and loans) Causes of fluctuations in payments: Economic fluctuations Living expenses Other welfare schemes Number of first-generation immigrants NOK billions 8 1997 6 4 NOK 6.0 billion 2012 NOK 5.1 billion 2017 NOK 6.6 billion Recipients must be unable to support themselves through: work own funds other financial benefits 2 0 1997 2002 2007 2012 2017 The municipalities disburse social assistance through the NAV offices. The figures for the years 1997 2016 have been inflation adjusted in accordance with Statistics Norway s consumer price index so that they are comparable with the preliminary figures for 2017. The final figures for 2017 will be published in July. Source: Statistics Norway (KOSTRA)

CHANNELS USED LAST YEAR

Which channels have users used to contact NAV? 70 60 50 40 30 20 10 0 2016 2017 Letter Spoken to NAV employee on the phone NAV offices Services on nav.no nav.no to find information Write to us NAV Centre for Assistive Technology

Use digital channels and telephone nav.no Ditt NAV Telephone 62 million visits 31.4 million log-ins 5 million calls answered Message to NAV Social media Chat 715,000 inquiries 55,000 questions on Facebook 83,000 messages

More people are logging in to nav.no 35 000 000 30 000 000 25 000 000 20 000 000 15 000 000 Use of nav.no has increased from previous years, but it is particularly positive that more people are logging in to Ditt NAV. Here they can access NAV s service offerings online. 10 000 000 5 000 000 0 2016 2017

Telephone is still the most widely used channel to contact us Number of calls to NAV Call and Service Centre 6 000 000 5 000 000 4 000 000 3 000 000 In 2016 we spent 5 minutes and 34 seconds on each phone call. 2 000 000 1 000 000 0 2016 2017 Incoming calls Answered calls Call length increased in 2017, to 6 minutes and 13 seconds.

What do users call about? Doctor and therapist 1,8 % International 2,0 % Disability benefit Pension 4,8 % 5,4 % Other 4,9 % Family 15,1 % Work and health 40,5 % Message to NAV 11,5 % Employer 14,0 %

How users want to communicate with us 0 20 40 60 80 Digital communication In person at a NAV office Telephone Paper 56% 64% 44% 39% 41% 39% 29% 29% 2016 2017

Increase in the number of service complaints 12,232 complaints processed 15,688 service complaints received in 2017 10,7 % NAV employee s behaviour 36,1 % Processing time and response time 41,3 % Availability 11,8 % Guidance, information and follow-up

NAV S WORK-ORIENTED FOLLOW-UP

Increased transition to work for both job seekers and people with impaired work capability 90% 80% 70% 60% 50% 40% 30% 20% 10% Job seekers with unemployment benefit 2016 Job seekers with unemployment benefit 2017 Job seekers without unemployment benefit 2016 Job seekers without unemployment benefit 2017 People with people with impaired work capability in 2016 0% Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec The figure shows the share that have transitioned to work among job seekers and people with impaired work capability.

The majority of young people are in activity quickly 74% of under 30s are unemployed for less than 8 weeks. They are then either in activity, have received an offer from NAV, or are receiving medical treatment. 2% Are not subject to additional follow-up for other reasons* 8% Subject to additional followup 16% No registration * For example: pregnant women, young people who are about to start their military service, and single parents with a child under the age of 1 year.

Share recipients of work assessment allowance (AAP) in activity after 26 weeks 50% 45% 40% 35% 30% 25% 20% 15% 10% 2016 2017 5% 0% Recipients of work assessment allowance (AAP) participating in schemes Recipients of work assessment allowance (AAP) in work (acc. to employment status form) Recipients of work assessment allowance (AAP) participating in schemes and/or in work (acc. to employment status form) The figures are the average for the year.

DIGITALISATION AND DEVELOPMENTS IN NAV

Many development projects in 2017 Simplified follow-up Parental benefit project Electronic case processing and filing Municipal reform project Electronic tax cards Work assessment allowance (AAP) 2018 Digitalisation of sickness absence follow-up Specialisation project Settlement in arrears / PESYS 2017 Planning of Project 3 Platform for the labour market Digitalisation of payment notices UDI service Modernisation of the National Registry Digitalisation of social services

Some of the things we did in 2017 Electronic administrative case processing and archiving in the Directorate Digital activity plan for users that can also be used in dialogue with their counsellor at the NAV office Improvements in digital applications for parental benefit on nav.no Digital submission of applications for sickness benefit Two new guides published on nav.no. They help ensure a good first meeting with NAV and that users become more self-sufficient Better registration of vacancies in NAV s online job database Improvements to ensure smooth merger of municipalities through changes in IT systems Improvements in the online overview of payments on nav.no (Dine utbetalinger) Digital meeting planner to find a meeting time that is convenient for everyone involved in the management of sickness absence Legislative amendments for work assessment allowance (AAP) that entered into force on 1 January 2018 NAV is starting to use electronic tax cards eskattekort Introduction of electronic ordering of temporary identification numbers ( Dnumbers )

Use of self-service solutions in the main areas 62% 76% 72% 87% 2016 2017 Work assessment allowance (AAP) Parental benefit 86% 93% 68% 73% Unemployment benefit Old-age pension

Growing number of digital applications 0 200000 400000 600000 800000 2015 More people are submitting applications electronically from nav.no. However, NAV still has a way to go, as there is still much that has to be submitted on paper. 2016 2017

Digitalisation of letters saves postage 250 200 150 220 216 193 165 NAV s postage costs have decreased by 44% since 2013 100 50 0 97 2013 2014 2015 2016 2017 This trend is set to continue, and in February 2018 we stopped sending a large portion of letters by post to people we know use digital channels. * Figures in millions

Share that report sickness absence digitally 100% 80% 87.1% of people on sick leave who had the opportunity to choose the digital solution chose this in March 2018. 60% 40% 20% 0% May 17 Sept 17 Jan 18

70 60 50 40 30 New, digital follow-up 39.1% 1 week after launch 60% 16 weeks after launch 48.5% 9 weeks after launch 101,781 messages from users On 4 December NAV launched the digital activity plan. This meant a shift from a manual plan on paper, which often had to be filled out by the counsellor, to a dynamic digital plan based on collaboration and dialogue. The plan allows users to have better overview of their case, as well as direct dialogue with their counsellor. The graph shows the number of users who have at least one activity scheduled with NAV in the plan since its launch. The figures are based on the total share of people who are under work-oriented follow-up from NAV and do not take into account people who use the plan without sharing it with NAV or people who do not use digital solutions.

We shall develop services and information that are adapted to different user groups needs Rapid developments in NAV and we still have a lot of work to do Case processing solution for parental benefit and sickness benefit New CV and vacancies service Digitalisation of social services Further development of the content on nav.no Simpler, more efficient registration for job seekers More digital services for employers

ASSISTIVE TECHNOLOGY

Number of applications for assistive technology 160000 120000 NAV Centre for Assistive Technology is experiencing rising demand for the services they offer. 80000 40000 0 2014 2015 2016 2017 A growing number of elderly people, who are active users of the Centre for Assistive Technology, account for a large percentage of the cases by number.

Number of assistive devices provided Everyday life Workplace 10.6% 3000 500 000 Increase in expenditure in 2017 on assistive devices for use in everyday life. In 2017, NAV provided citizens with just over 20,000 assistive devices in this category. 2500 2000 1500 2014 2015 2016 2017 450 000 400 000 350 000 2014 2015 2016 2017 Average case processing time for assistive technology for use in the workplace was 20.5 days in 2017. This is a decline from all the previous years.

THE LABOUR MARKET IN NORWAY

Improvements in the labour market in 2017 Unemployment fell throughout the whole of 2017 2.4% of the work force was registered as completely unemployed at year-end 2017. Decrease from 2.8% one year earlier Fewer dismissals and layoffs Increase in the number of vacant positions Lowest Sogn & Fjordane 1.5% Below 2% 2 2.9% 3% or more Highest Rogaland 3.2% Share of the work force registered as completely unemployed in each county Number at the end of Q4 2017.

Photo: Colourbox The decline in the oil industry resulted in differences in unemployment 5 4 While unemployment developed equally in Norway during the financial crisis (around 2008), only southern and western Norway saw an increase in unemployment when the price of oil fell (around 2016). 2016 Rogaland: 4.5% 2008 Hordaland: 3.4% 3 2 1 0 Share of the work force registered with NAV as completely unemployed in two counties in western Norway and in two inland counties (annual average). Oppland: 2.0% Hedmark: 2.2%

Short and long-term absence from work Gross unemployment is the sum of all the completely unemployed people and job seekers participating in schemes. Completely unemployed 65,400 people Ready for work Partially unemployed 29,800 people Unemployed people participating in schemes organised by NAV 19,600 Sickness absence 123,500 people Not working Working Impaired work capability 193,600 people Disability benefit 325,900 people Not ready for work Number of people registered with NAV. The figures show job seekers, people with impaired work capability and people with disabilities at December 2017, and the annual average for sickness absence for 2017. Note that some people may be in more than one group.

HEALTH-RELATED BENEFITS

Sickness absence remains stable Doctor-certified sickness absence Q4 2017 Highest Finnmark: 6.4% Below 5.5% 5 5.6% Over 6% Doctor-certified sickness absence during the past 10 years, as a percentage 6 6,4 6 5,4 5,6 5,4 5,4 5,4 5,4 5,5 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Lowest Oslo: 4.5%

Causes of sickness absence Women Men Other 29% Musculoskeletal disorders 34 % Other 25 % Musculoskeletal disorders 44 % 6% Respiratory 8% Pregnancy 22% Mental health disorders Digestive disorders 6 % 7 % Respiratory 18 % Mental health disorders Sickness absence is almost twice as high among women as among men. Doctor-certified sickness absence in Q4 2017. The diagnosis overview shows the number of full-time work days lost as a percentage, distributed among the main diagnosis groups.

Fewer people received work assessment allowance (AAP) 200 000 150 000 100 000 50 000 174,300 people on work assessment allowance (AAP) in December 2010, which corresponds to 5.5% of the population. 140,600 people on work assessment allowance (AAP) in December 2017, which corresponds to 4.2% of the population 0 2010 2011 2012 2013 2014 2015 2016 2017 Figures for people registered as recipients of work assessment allowance (AAP) at NAV. In this context, population means the population aged between 18 and 66 years.

The figures show the number of people who have stopped receiving work assessment allowance (AAP) in the first quarter of 2017 and their status in NAV registers 6 months later. What happens to people who stop receiving work assessment allowance (AAP)? 14,560 people stopped receiving work assessment allowance (AAP) in Q1 2017 2,869 (20%) 3,393 (23%) are in work without benefits from NAV are in work combined with benefits from NAV 5,108 (35%) are receiving disability benefit 1,562 (10%) have impaired work capability 293 (2%) are job seekers 369 (3%) are old-age pensioners 966 (7%) are classified as other (e.g. students, self-employed, etc.) 43% are in work

More people receiving disability benefit 400 000 300 000 200 000 100 000 301,200 people received disability benefit in December 2010, which corresponds to 9.5% of the population 325,900 people received disability benefit in December 2017, which corresponds to 9.6% of the population 0 2010 2011 2012 2013 2014 2015 2016 2017 Number of people registered with NAV. In this context, population means the population aged between 18 and 66 years.

Statistics from NAV at the end of December each year. * Approximately 6,000 people receive disability benefit and work assessment allowance (AAP) in the same month. The figures have been adjusted so that these individuals are not counted twice in the group "recipients of work assessment allowance (AAP) or disability benefit". Recipients of long-term health-related benefits 500 000 Recipients of work assessment allowance (AAP) or disability benefit * 400 000 471,000 Recipients of disability benefit 460,200 Prognosis 2019: 300 000 301,200 325,900 337,200 200 000 Recipients of work assessment allowance (AAP) 100 000 174,300 140,600 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

TRENDS

The number of pensioners has almost tripled in 50 years 312,200 pensioners 8% of the population The pension reform: Option of drawing old agepension before turning 67 Prognosis: 1 million old-age pensioners 2017 2021 1973 2011 1967 New pension age: From 70 to 67 years 916,700 pensioners 17% of the population = 10,000 people Figures as at December 2017. The figures for 2021 are NAV s latest forecast.

The cost of the welfare state in the future Share of mainland GDP 20% 2016 Expenditure on NAV s social security schemes * 2060 19.5% 18.3% 16.8% 15% 16.0% Share of social security expenditure for pensions * * 11.6% 10% 5% 0% 7.9% NAV s forecast for expenditure is based on Statistics Norway's three scenarios for population growth. 2020 2030 2040 2050 2060 10.5% 9.2% The graphs show actual development up until 2016, after which it is projections for expenditure as a percentage of gross domestic product (GDP) for mainland Norway. Assumes unchanged use of social security and a slight increase in employment among seniors. * Expenditure on pensions, family benefits, income security in connection with illness or unemployment, assistive technology and a number of minor benefits. ** Old-age pension, contractual early retirement pensions (AFP) and supplementary benefit. = Low = Medium = High