Norwegian LFS jobless rate rises in June, Norges Bank likely to refrain from hiking rates in September

Norwegian LFS-unemployment rose in the month of June. Jobless rate rose 3.6 percent but employment rose slightly. These figures might not impact the central bank’s decision in September. Consensus expectations were for the jobless rate to have remained unchanged at 3.4 percent. Unemployment is up by 0.1 percentage points from March.

Employment rose 9000 people from May to June and increased by 3000 people from the previous three-month period. The labor force rose by 17,000 people the last month and by 7000 from March.

“We don’t expect Norges Bank to focus on the development in LFS-unemployment at the policy meeting in September, but if anything we view the development in the labour market in total as slightly weaker than what Norges Bank expected in June. We expect Norges Bank to refrain from hiking rates in September, but that is mainly due to the weakening and increased uncertainty abroad”, said DNB Markets.