Norway's labor market continues to remain subdued

Data released earlier today showed that Norwegian LFS unemployment rate was unchanged at 4.7 percent from February to March, but rose from 4.5 percent in December (the previous three months). Unemployment in February was revised up from 4.6 percent to 4.7 percent.

Employment fell by 9,000 people from February to March, and 10,000 from December to March. These figures have fluctuated on a monthly basis, but the level in March was roughly in line with the average for 2015.

Slightly weaker figures for employment and the upward revision to the number of unemployed in the previous month suggest that Norway's labor market continues to remain subdued. Norges Bank projected LFS unemployment for 2016 at 4.6 percent in its March Monetary Policy Report.

"We expect further increase in unemployment this year and the next two years. Norges Bank believes unemployment to peak in 2016." said DNB Bank in a report.