A new report from LO indicates that unemployment remains stubbornly at 4.5%, particularly affecting young people and construction workers, despite strong performance in the industry.
The Norwegian Labour Confederation (LO) has released a report stating that unemployment has risen to 4.5% in 2026, up from 4.0% in the previous year, with young individuals and construction workers among the hardest hit. While the industrial sector is thriving, there is growing concern over the increased joblessness in specific demographics, signaling an uneven recovery in the labor market.
LO's analysis emphasizes that despite the uptick in unemployment, the overall conditions for this year's wage settlements are seen as favorable. The report highlights robust growth within the export industry and the defense sector, suggesting that there is sufficient leeway for negotiations that would allow workers to secure a share of the increased earnings stemming from these sectors. The performance of the export industry is viewed as a cornerstone for potential wage growth.
Furthermore, LO projects a future economic outlook where interest rates are expected to decrease, forecasting annual cuts of 0.25 percentage points until 2028. This prediction is based on the premise that the peak of interest rates has been reached, thus paving the way for improved economic conditions, which could ultimately benefit employment rates and wage negotiations moving forward.
