In an effort to tackle youth unemployment and social exclusion, the Norwegian Government has announced a groundbreaking pilot program that will provide income support to young people who are actively seeking work but do not qualify for traditional welfare benefits. The initiative, unveiled by the Ministry of Labour and Social Inclusion on March 21, 2025, targets young adults between the ages of 18 and 29 who are currently outside the workforce and education system.
“More than 100,000 young people are currently not in work or education. This is a loss both for the individual and for society,” said Minister of Labour and Inclusion Tonje Brenna (Arbeids- og inkluderingsminister). “These young people must be given the chance to use their skills and strengths in collaboration with others. We need them in working life.”
Financial security tied to activity, not diagnosis
Unlike existing welfare schemes that require a medical diagnosis, this new program will provide income based on participants’ activity and motivation to enter the job market. Eligible individuals will receive a monthly income equivalent to the minimum level of the Work Assessment Allowance (arbeidsavklaringspenger, AAP). In 2025, this amounts to approximately NOK 250,000 (around EUR 21,500) per year for those over 25, and about NOK 170,000 (EUR 14,650) for those under 25. Participants with children will receive an additional allowance.
“Young people must be allowed to demonstrate what they are capable of, instead of proving that they are sick,” said Brenna. “When participants know they have a guaranteed basic income, they can dedicate their time and energy to learning, personal development, and finding employment.”
Comprehensive, full-time support for unemployed youth
The program will be administered through NAV, Norway’s Labour and Welfare Administration. Each participant will be enrolled in a full-time, personalized program that includes job search assistance, CV workshops, work experience opportunities, and paid employment placements. Regular follow-up and individualized guidance from NAV advisors will be a core component.
Only young people assessed by NAV as likely to become self-sufficient after the program will be admitted. Applicants must be motivated and able to commit to a structured, full-time activity plan.
A response to long-term economic and social needs for unemployed youth
The new youth initiative builds on the Ungdomsgarantien (Youth Guarantee) introduced in 2023, which aimed to provide personalized follow-up for unemployed youth. The 2025 national budget was boosted by nearly NOK 770 million (EUR 66 million) to expand such efforts.
The pilot will begin in selected counties in autumn 2025 and will run for up to one year per participant. The government plans to evaluate its outcomes before deciding, within four years, whether to implement it nationwide.
“We have much to gain from investing in youth activity. In the future, we will face a growing need for labor,” said Brenna. “Early intervention is key to preventing long-term exclusion. By helping more young people gain a stable foothold in the labor market, we benefit both individuals and society.”
Potential for long-term socioeconomic impact
While the short-term fiscal impact remains uncertain, officials believe the program could yield significant economic benefits. According to a 2021 report by the Norwegian Labour and Welfare Administration, if a young person aged 20–29 avoids lifelong disability benefits and instead joins the workforce, society stands to gain an average of NOK 6.4 million (EUR 550,000) per person. If just 1,000 youths transition into employment as a result of the program, the long-term benefit could reach NOK 6.4 billion (EUR 550 million).
By shifting the focus from diagnosis to activity and potential, Norway is positioning itself at the forefront of inclusive labor market reforms aimed at empowering a generation at risk of marginalization.
