Norway Seasonally Adjusted Unemployment Climbs to 31-Month High

Norwegian seasonally adjusted unemployment climbed to the highest since early 2011 as an expansion slows in Scandinavia’s richest economy.

The adjusted number of people without work climbed to 72,141, the highest since February 2011, the Oslo-based Norwegian Labor and Welfare Service said in a monthly report. The non-adjusted rate fell to 2.6 percent from 2.8 percent in August, in line with the median estimate of seven economists in a Bloomberg survey. The number of jobless fell to 69,564, the lowest since June, from 73,523 in August.

Norway’s central bank last week kept the main interest rate unchanged at 1.5 percent and signaled faster tightening as the krone weakened and house prices and consumer debt hover at record levels. Mainland gross domestic product, which excludes oil and gas production, will grow by 1.75 percent this year, after expanding 3.4 percent in 2012, the bank forecast.

The $500 billion economy is struggling with slowing expansion just as the rest of Europe resurfaces. Norges Bank said that most areas of enterprise in the country, including oil suppliers, have lowered growth estimates since the start of the year and predicted “moderate growth” over the next six months.

Norges Bank estimates registered unemployment will average 2.75 percent this year and next.

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