05-03-2025
How US aid freezes could impact foreign workers in Norway
The ripple effects of the abrupt halt of foreign aid funds by the new American administration have been particularly severe for humanitarian groups reliant on US funding, leading to project suspensions, financial uncertainty, and job losses.
Norway, a key player in global aid efforts, is now feeling the strain as aid-dependent organisations face critical funding gaps that threaten both their missions and their employees.
In Norway, one of the most immediate consequences is being felt by the Norwegian Refugee Council (NRC), which announced in late February that it could no longer sustain its operations due to delayed payments from the US government.
"The United States government's continued failure to issue outstanding payments for completed and ongoing authorised work has created a liquidity crisis we, the Norwegian Refugee Council (NRC), can no longer absorb," NRC stated in a press release.
"We are therefore forced to suspend our remaining programming funded by the US at the end of this week, February 28th. This includes even lifesaving programmes for which we have received waivers to continue implementation during the US government foreign assistance review."
Beyond the direct impact on aid recipients, these financial shortfalls have triggered concerns about job security among workers in Norway's aid sector.
Some of these employees are foreigners working on skilled worker visas, meaning that losing their jobs could also mean losing their legal right to stay in the country.
Union concerns over job security
Despite growing concerns over job security, there is little concrete data on the number of foreign workers employed in Norway's aid sector.
The Local contacted both the Norwegian Civil Service Union (NTL) and NORAD, the Norwegian Agency for Development Cooperation, but neither had exact figures on how many foreign employees work in the field.
This lack of official statistics makes it difficult to fully assess the impact of the aid freezes on foreign workers.
Although data is scarce, unions report growing uncertainty among foreign aid workers, particularly those on skilled worker visas.
However, Kjersti Barsok, President of the Norwegian Civil Service Union (NTL), which also represents workers in NRC, acknowledged a growing sense of uncertainty.
"Some foreign employees working for the Norwegian Refugee Council must have a skilled worker visa to work in Norway," Barsok told The Local.
"These employees were shielded in the first round of furloughs (Norwegian: permitteringer – a mandatory leave of absence) this year, as they are not entitled to unemployment benefits."
While furloughs are common in Norway as a temporary cost-saving measure, many foreign employees are not familiar with the concept.
"Furloughs are not a usual measure outside Norway, so NRC was affected by furloughs and not layoffs in the first place. NTL argued in favour of shielding the foreign workers from being furloughed, as they would have lost their income after 14 days and would have to return to their home countries," Barsok said.
Increasing layoffs and downsizing
However, with the aid crisis deepening, the initial wave of furloughs may soon give way to permanent layoffs.
"It is already happening, and we are deeply worried about the consequences and how far it will go – both in terms of employees in Norway and the hundreds of thousands of people impacted globally," Barsok said.
The USAID aid freeze led NRC to furlough 27 employees from its head office, with around 10 foreign employees on skilled worker visas being protected from furlough.
However, layoffs could soon become unavoidable as NRC restructures.
"A restructuring of NRC is underway, which will likely lead to a downsizing. This process is separate from the furlough process and follows its own framework and set of rules," Barsok noted.
Other organisations in Norway's aid sector are also experiencing drastic cutbacks. The Norwegian People's Aid (Norsk Folkehjelp) has announced it will lay off 1,700 employees – half of its workforce.
Protecting foreign workers in the aid sector
Given the dire situation, unions are discussing ways to protect foreign employees who may lose their jobs.
"We work with these issues on a case-by-case basis," Barsok explained.
"In cases of furloughing, we generally shield foreign workers, as mentioned above. If the member is affected by a downsizing, other assessments determine whether the dismissal is justified."
As the crisis unfolds, foreign workers in Norway's aid sector face an uncertain future.
Without employment, many could be forced to leave the country, deepening the challenges of a sector already struggling to maintain essential operations.
