The Norwegian labor market has weakened due to the downturn in the oil sector; however, a flexible labor market in other sectors’ growth is absorbing some of the shock. Rise in unemployment is slower in 2016 than last year, while growth in employment seems to have rebounded again this year. The Norwegian Labor and Welfare Administration (NAV) and the Labor Force Survey (LFS), the two labor market data sources, have been describing a rather different scenario. There are several reasons for this; however, both are showing signs of labor market stabilization.
This is partially due to the main waves of redundancies in the oil sector that came from Easter through to late summer last year and the cutbacks being announced are quite smaller. Oil-related industries are likely to further downsize this year, albeit at slower rate, with the result that NAV unemployment peaks in the summer at about 3.5 percent, said Danske Bank in a research report.
Furthermore, the number of new vacancies that NAV published continues to increase. This suggests that labor demand outside the oil sector should be quite healthy. This affirms the view that growth outside the oil sector is rebounding rather than being adversely impacted by the downturn in oil. Either way, it implies that increase in unemployment is to certain degree exaggerating labor market weakness.


JPMorgan Cuts Gold Price Forecast, Sees Bullion Reaching $4,500 by End of 2026
US Jobs Report Preview: June Payroll Growth Seen Slowing as Fed Rate Decision Looms
FxWirePro: Daily Commodity Tracker - 21st March, 2022
Oil Prices Steady as U.S.-Iran Peace Talks Ease Strait of Hormuz Supply Fears
Goldman Sachs Raises USD/JPY Forecast, Sees Yen Weakness Persist Through 2027
Asian Currencies Rise as Dollar Weakens; Yen Holds Steady Amid Japan Intervention Watch
Russia Stocks End Flat at Three-Year Low as MOEX Index Stalls, Gold Prices Climb
Best Gold Stocks to Buy Now: AABB, GOLD, GDX
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed
Moody’s Says Peru’s President-Elect Keiko Fujimori Could Boost Investor Confidence 



