Norway’s labor market is recovering at a record speed; NAV chief: The crisis is over

The labor market is approaching pre-pandemic levels. The NAV’s forecasts indicate that unemployment next year will be lower than before the corona crisis.

“The improvement in the labor market has been faster than we could have imagined, and there is little indication that unemployment will take hold at a higher level, as in previous crises,” NAV chief Hans Christian Holte stated in a press release.

From March to October, the number of completely unemployed people has been reduced by 37,000. The number of both fully and partially unemployed people fell by 68,700.

“The crisis in the labor market is now over,” Holte told E24.

Even lower unemployment expected next year

The NAV envisages a solid recovery of the Norwegian economy in the coming years, which will lead to further growth of employment.

This year, there will be an average of 88,000 completely unemployed people, the NAV estimates. Next year, the number may fall to 64,000. In 2023, it is expected to fall to 60,000. 

That corresponds to a registered unemployment rate of 3.3% this year, and 2.2% and 2.1%, respectively, in the following two years.

“Registered unemployment will on average be lower than before the pandemic both next year and in 2023. To put this in perspective, we have only had lower unemployment than this in two of the last 30 years,” Holte said.

Some occupational groups remain particularly vulnerable

He emphasizes that, although the overall picture is positive, the pandemic has created certain imbalances in the labor market.

“Some occupational groups, such as tourism and transport, still have very high unemployment, and many have been out of work for a long time. Thus, more people will probably need help from the NAV to return to work.”

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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