Rise in sick days costing Europe billions every year

For businesses in Norway, illness is becoming an increasingly trying problem.

Workers take more sick days than anywhere else in Europe and absences are at the highest level in 15 years.

As companies struggle with chronic shortages, critics blame an overly generous welfare system, where spending on health-related benefits outranks other developed nations. The IMF calls it "costly and distortionary" and says that reform should be a priority. Workers get their full salary for a year, with a cap at somewhat higher than the average wage, and then two thirds of former income after that.

"Companies tell us that more time is spent on recruitment, getting hold of the people with the right skills, while there is more wear and tear on the employees who remain," said Odd Arild Grefstad, chief executive officer of Norwegian pensions and insurance firm Storebrand ASA. "All of that means that productivity drops."

But lavish benefits are far from the only cause, and the situation is worsening across Europe. Ageing workforces and more awareness of stress and mental health, particularly among younger generations, have been blamed, as have repercussions from Covid.