NHO with report on mood change in the Norwegian economy – news Norway – Overview of news from different parts of the country

In the last quarter, the number of vacancies has fallen markedly in both industry, tourism, construction, transport and business services, shows the latest economic overview from NHO. It is one of several signs that employment will slow down after a steep increase following the pandemic. While one in seven companies, 15 per cent, say they will increase employment, almost twice as many will reduce it. The net figure is the lowest since the financial crisis, according to NHO. CHANGE OF MOOD: We are facing a change of mood in the Norwegian economy, says NHO’s chief economist Øystein Dørum. Photo: Berit Roald – Norway is entering a recession with a decline in activity in the economy and somewhat higher unemployment, says NHO’s chief economist Øystein Dørum. NHO has jacked down the growth forecast for the Norwegian economy to 0.8 per cent next year. Activity will decrease in the first two quarters of next year. NAV: 15-20,000 more unemployed next year NAV also assumes that unemployment will increase during 2023, so that we will have 15-20,000 more fully unemployed at the start of 2024 than now. Unemployment will increase from 1.6 per cent today to 2.1 percent. – In this sense, we are going from very low unemployment to still low unemployment, says senior adviser Johannes Sørbø to news. MORE UNEMPLOYED: NAV believes we will have 15-20,000 more unemployed next year. Photo: Ørn E. Borgen Lower consumption among people due to rising prices and higher interest rates will affect service industries such as tourism, catering and trade, according to Sørbø in NAV. NHO points to the building and construction industry where many companies want to get rid of employees. The construction industry supplies industries that are affected by higher interest rates and higher house prices. NHO believes house prices will rise by 6 per cent next year. Bright spots: price growth down People will spend less money next year due to high inflation and increased interest rates. – But both people and companies tend to take a darker view of the situation than the figures suggest, says Dørum. PRICE SHOCK OVER: – Price growth will decrease beyond 2023, NHO believes. Photo: Marie Staberg / news – Households can be happy that we are over the worst price shock. And besides, there are many indications that the interest rate peak is approaching the peak, says Dørum.



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