Unemployed people may lose unemployment benefits if they themselves left their job or were dismissed due to circumstances that were their fault. They may also lose their benefits if they break the activity requirements imposed by NAV.
The government tightened its policy twice. Only in 2016, when they extended the period without unemployment benefits from 8 to 12 weeks, and in 2021, when they extended it to 18 weeks.
In this analysis, NAV researcher Kristine von Simson and her colleague Johannes Sørbø mainly looked at the effects of the changes introduced in 2016 and do not see whether the changes had the effect that politicians expected.
– We found that tougher sanctions did not cause fewer people to leave their jobs or reject job offers. At the same time, we see that the financial consequences for those who are punished may be more serious, says von Simson.
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Sanctions for those who left their jobs themselves
In 2014-2019, a total of 85 were imposed. sanctions. That means about 12 percent of all people who received unemployment benefits lost them for a period of time. By far the most common situation was receiving sanctions that concerned people who left their jobs on their own - 69% of such people. Before 2016, the period without unemployment benefits was 8 weeks, and after 2016 - 12 weeks.
– You may also lose your unemployment benefit for a period of time if you do not comply with the activity requirements set out by NAV. For example, if you refuse to participate in a labor market initiative, decline a job offer, or refuse to attend a meeting with NAV. Nearly a third of those who were sanctioned lost unemployment benefits because of it, says von Simson.
The goal was to make it harder to resign from a position and turn down job offers
One of the goals of introducing tougher sanctions was to make it more difficult to resign from a position and reject job offers. However, NAV researchers do not see a decline in the percentage people downloading unemployment benefits, which received a sanction in this respect after the change in 2016. The number of sanctions imposed decreased, but unemployment also dropped, and therefore the number of people who received unemployment benefits. The percentage of unemployed people who received a penalty was at the same level in 2019 as in 2015.
– There may be various reasons why we do not see a clear decline in the use of sanctions. Many people may not know that you have been disciplined for leaving your job, so this will not influence your decision to do so. It may also happen that you become so dissatisfied with your position that you decide to resign anyway, says von Simson.
Sanctions are more likely to affect young people, immigrants and men
Sanctions are mainly imposed on young people under the age of 35, both for leaving work and for violating professional activity requirements. We also see that immigrants and men are clearly overrepresented among those who receive sanctions for violation of the requirements regarding activities.
– The fact that young people are punished more often than older people may be related to the fact that they are new to the labor market. They may also be more likely to do work they don't enjoy. Young people also change jobs more often than older workers. Moreover, both young people and immigrants are prioritized in labor market policies and are therefore more likely to meet labor force participation requirements, says researcher Kristine von Simson.
Previous research
Research from other countries shows that the periodic loss of unemployment benefits as a result of sanctions means that unemployed people find work more quickly. At the same time, it means that they can take up a job that is less suited to their qualifications, which makes us have a less effective labor market. Many people may also lose their job again, start receiving other benefits or have health problems. It is therefore not certain that the overall effect will be positive.
– Our analysis shows that the austerity measures introduced in 2016 did not result in fewer people leaving their jobs or rejecting job offers. However, the consequences for the person concerned will be greater as they will now lose unemployment benefits for a longer period. Studies conducted in other countries also show that this may result in less efficiency of the labor market, says Kristine von Simson.
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Source: NAV
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