Norway’s LFS unemployment remains unchanged, in line with expectations

Norway’s Labor Force Survey unemployment remained unchanged from February to March, after rising modestly in December but largely in line with market expectations.

 The LFS unemployment remained steady at 4.7 percent during the Feb-Mar period, but had risen to 4.5 percent in the three months ended Dec 31. Unemployment in February was revised up from 4.6 percent to 4.7 percent.

However, it was expected that the unemployment rate would remain unchanged at 4.6 percent. Norges Bank had projected 2016 LFS unemployment at 4.6 percent in its March Monetary Policy Report, reports confirmed.

Meanwhile, actual employment declined by 9,000 people from February till March, lower than the 10,000 people loss during December-March period. Though these figures have fluctuated on a monthly basis, the level in March was roughly in line with the average for 2015.

"We expect further increase in unemployment this year and the next two years," DNB said in a research comment.

Slightly weaker figures for employment and the upward revision of the number of unemployed give some support to the view that the labor market still suffers. Meanwhile, Norges Bank predicts that unemployment will slowly reach its peak through 2016.