The rate of unemployment in Norway

The rate of unemployment in Norway

In Norway, the rate of unemployment is measure is measured by the Labour Force Survey, which is a questionnaire that is conducted among a sample population that is aged between 15 to 74 years old. The Labour Force Survey complies with international standards, which is a method that compares unemployment rates among different countries. It is the more efficient method of measuring unemployment because it provides a true picture of the population in terms of labor and status. Hence, the figures given depend on the empirical evidence and true from the population perspective.

In measuring inflation in Norway, the Norges Bank uses the monetary policy, where it uses inflation targeting, which is characterized by a numerical inflation target. This is the implementation of monetary policy that offers a critical role in forecasting inflation. In other words, it has been often referred to as the forecast targeting. It offers a high degree of transparency and accountability in measuring inflation in Norway. Forecast, therefore, helps in solving the lag between the monetary policy actions, and hence it is more effective when guided by the forecasts.

There is a close relationship between unemployment and inflation because they are both used as economic indicators. In terms of the labor supply and demand, for example, high unemployment rates mean that there is an increased number of people looking for jobs, which means that the labor supply is higher than its demand. This implies that higher wages will be paid, and age inflation will be experienced. On the other hand, low unemployment means that demand for labor exceeds its supply, where employers pay high wages to attract employees leading to rising wage inflation.