Norway’s jobless rate rises in January, likely to rise further

Norway posted jobless rate of 4.8% in January 2016, as compared with median projections of 4.5% and DNB’s projection of 4.6%. The total number of unemployed people reached 134,000 in January from December’s 128,000 and October’s 129,000. Since January 2015, the total number of unemployed people increased by 25,000. Meanwhile, employment in Norway declined 2000 in January from December 2015; however, it increased by 7000 from the earlier three month period. Employment in the country is unchanged since January 2015; however, as a proportion of the population, employment dropped somewhat.

The LFS unemployment data is volatile. However, January’s data is in line with the scenario where employment is stagnating and unemployment is rising slowly. Norges Bank projects that the average jobless rate will be 4.6% for 2016 and that the joblessness will reduce. However, the data released today shows that it is on an upward trend. According to DNB, the jobless rate is expected to rise further. The central bank downplays the monthly developments in LFS unemployment. However, if it is confirmed that the labor market will weaken further, there is a possibility of further rate cut, added DNB.