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Case Report – Iceland Labour Market Services in the Nordic Periphery A joint research project carried out by the University of Akureyri Research Institute and the University of the Faroe Islands Labour Market Services in the Nordic Periphery A joint research project carried out by the University of Akureyri Research Institute and the University of the Faroe Islands Elín Aradóttir Randi Frederiksberg Grétar Þór Eyþórsson Jógvan Mørkøre ANP 2004:727 Labour Market Services in the Nordic Periphery A joint research project carried out by the University of Akureyri Research Institute and the University of the Faroe Islands ANP 2004:727 © Nordic Council of Ministers, Copenhagen 2004 Print: Ekspressen Tryk & Kopicenter Copies: 300 Printed on paper approved by the Nordic Environmental Labelling. This publication may be purchased from any of the sales agents listed on the last page. Nordic Council of Ministers Nordic Council Store Strandstræde 18 Store Strandstræde 18 DK-1255 Copenhagen K DK-1255 Copenhagen K Phone (+45) 3396 0200 Phone (+45) 3396 0400 Fax (+45) 3396 0202 Fax (+45) 3311 1870 www.norden.org Nordic Labour Market Cooperation is regulated via separate agreements and conventions. The Nordic Council of Ministers (the Ministers of Labour) draws up the political guidelines for cooperation in this area, which also covers general working conditions, legal aspects of industrial relations and the migration of workers in the Nordic region. The Nordic Council of Ministers is assisted by the Nordic Committee of Senior Officials for Labour Market and Working Environment Policy. The secretariat of the Council of Ministers is located in Copenhagen. The Nordic Council of Ministers was established in 1971. It submits proposals on co-operation between the governments of the five Nordic countries to the Nordic Council, implements the Council's recommendations and reports on results, while directing the work carried out in the targeted areas. The Prime Ministers of the five Nordic countries assume overall responsibility for the co-operation measures, which are co-ordinated by the ministers for co-operation and the Nordic Co-operation committee. The composition of the Council of Ministers varies, depending on the nature of the issue to be treated. The Nordic Council was formed in 1952 to promote co-operation between the parliaments and governments of Denmark, Iceland, Norway and Sweden. Finland joined in 1955. At the sessions held by the Council, representatives from the Faroe Islands and Greenland form part of the Danish delegation, while Åland is represented on the Finnish delegation. The Council consists of 87 elected members - all of whom are members of parliament. The Nordic Council takes initiatives, acts in a consultative capacity and monitors co-operation measures. The Council operates via its institutions: the Plenary Assembly, the Presidium and standing committees. Labour Market Services in the Nordic Periphery Table of contents CHAPTER 1: Introduction ...................................................................................................................... 7 CHAPTER 2: Faroe Islands .................................................................................................................. 11 1) Background .................................................................................................................................... 11 2) The Faroese labour force ............................................................................................................... 13 3) Brief history and structure of the unemployment insurance system ............................................... 18 4) Findings at ALS.............................................................................................................................. 23 5) Presentation of the selected communities...................................................................................... 26 Sandur ........................................................................................................................................... 26 Vágur ............................................................................................................................................. 28 6) Findings with the community representatives................................................................................. 30 7) Summary........................................................................................................................................ 36 CHAPTER 3: Iceland............................................................................................................................. 37 1) Background information ................................................................................................................. 37 The Icelandic labour market........................................................................................................... 37 The Icelandic unemployment insurance system and its implementation........................................ 40 The Icelandic labour market measures and services ..................................................................... 43 2) Presentation of the area of study ................................................................................................... 46 The North East Region................................................................................................................... 46 Húsavíkurbær municipality............................................................................................................. 48 Skútustaðahreppur municipality ..................................................................................................... 49 3) Findings.......................................................................................................................................... 51 Labour market services in the North East Region.......................................................................... 51 The views of community leaders in the two selected communities ................................................ 57 4) Summary........................................................................................................................................ 62 CHAPTER 4: Norway ............................................................................................................................ 67 1) Background information ................................................................................................................. 67 The Norwegian labour market........................................................................................................ 67 The Norwegian unemployment insurance system ......................................................................... 69 The Norwegian labour market measures and services .................................................................. 72 2) Presentation of the area of study ................................................................................................... 76 The Finnmark Region..................................................................................................................... 76 Båtsfjord municipality ..................................................................................................................... 78 Lebesby municipality...................................................................................................................... 80 3) Findings.......................................................................................................................................... 82 Labour market services in Finnmark Region.................................................................................. 82 The views of community leaders in the two selected communities ................................................ 89 4) Summary........................................................................................................................................ 93 CHAPTER 5: Conclusions.................................................................................................................... 97 The weakness of the Faroese unemployment insurance system ....................................................... 97 Strictly formalized vs. unformalized unemployment insurance systems?....................................... 97 Local presence, local flexibility - the solution for the Faroe Islands?.............................................. 98 Conclusions of the Icelandic case study............................................................................................. 99 Positive aspects and opportunities for improvements of the current labour market services ......... 99 Challenges and barriers for improving local labour market situations .......................................... 100 Positive aspects of the Norwegian system ....................................................................................... 101 Final comments – identifying best practice....................................................................................... 101 The importance of the local emphasis ......................................................................................... 101 Labour market services and the context of economic development............................................. 102 Labour market services and the context of rural development..................................................... 103 Sammendrag på dansk......................................................................................................................
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