LFS reveals Norway's unemployment is increasing fast. In contrast to registered unemployment. Not the most important labour market indicator, but if anything argues for a September cut. The LFS unemployment rate in April was 4.2% and increased by 2000 person from March, whereas, consensus forecast was 4.2%, notes Nordeabank.
Unemployment in April is somewhat less than at the start of the year. The increase is still much higher than in registered unemployment. Registered unemployment is well below the peak level after the financial crisis, while LFS unemployment peaked at 3.7% in 2010.
Norges Bank still view registered unemployment as the best indicator for the tightness in the labour market. But signals given at the last MPC meeting could indicate it starts wondering whether the labour market is deteriorating faster than expected, notes Nordeabank.
