Norway unemployment falls in December, likely to rise in the months ahead

The number of unemployed people in Norway fell during the month of December, while the rate of unadjusted jobless people remained unchanged during the period. However, the country’s jobless rate is anticipated to rise in the months ahead.

Norway’s registered unemployment fell by 700 persons on a seasonally adjusted basis, from November to December. Gross unemployment, which includes those on measures, fell by 200 persons to 101.5k. The unadjusted rate was unchanged at 2.8 percent, slightly below market expectations of 2.9 percent.

On the strong side, with an unexpected fall in unemployment, the broader roader picture is still that of sideways unemployment. Still, December sees some question marks on data quality. The gap between LFS and registered unemployment persists, albeit narrowing somewhat. LFS indicates labor market is weaker the registered data points to.

"We expect unemployment to rise somewhat ahead," said DNB Markets in its latest research report.