Norway’s unemployment remains almost unchanged so far in 2016

Norway’s unemployment remains almost unchanged so far in 2016. Registered number of unemployed people, including labor market measure, dropped by 300 persons in March. Consensus expectation was for an increase in unemployment by 900. Norway posted unadjusted unemployment rate of 3.3%, on par with consensus forecast. The unemployment figure was registered earlier than normal for March. Norges Bank had forecast unemployment drop by 100 persons, suggesting a rise of around 800 persons per month.

The unemployment figure registered for March is better than expected.  It does not support the opinion of a rate cut in June, but argues for the central bank to wait till September. Still, stronger NOK is expected to compel Norges Bank to lower rates.