Norway: Unemployment on the weak side – Nordea Markets

According to Erik Johannes Bruce, Research Analyst at Nordea Markets, today’s labour market figures for Norwat were somewhat on the weaker side, but no doubt, Norges Bank will hike in September.

Key Quotes

“Registered unemployment including those on labor market measures fell by 2 400 persons in August after the rather sharp increase last month. That was somewhat less than we had expected (-3000).”

“Taking into account that a new registration routine probably pull up the last figures, unemployment has moved about sideways during the summer. Through 2017 and early 2018 unemployment fell by between 1000 and 1500 persons a month.”

“Our view is that with oil investment soon starting to grow and a coming slowing of the downward trend in house building, growth and hence employment will grow strongly the coming year. That means a tighter labour market.”

“But for now Norges Bank will conclude that unemployment seems to be leveling out at a somewhat higher level than expected.”