OSLO (Reuters) - Norwegian unemployment fell more than expected in May, hitting a nine-year low as the economy expands amid rising prices for crude oil, the country's main export, and reinforcing predictions for a September rate hike.
Seasonally adjusted unemployment, including those on job training, fell by 3,220 to 80,210 people in May, data from the Norwegian Labour and Welfare Administration (NAV) showed, the lowest level seen since March of 2009.
Analysts in a Reuters poll had on average expected a more moderate drop to 82,600 people in May.
"Unemployment (data) is stronger than expected and supports our view of a first rate hike from Norges Bank in September," brokerage DNB Markets said in a note.
Norges Bank in March said it plans to raise its key deposit rate after summer, which most economists interpreted to mean a September hike, but low inflation readings have since made some analysts question the outlook.
"Clearly some of the doubt about a September hike is removed," brokerage Nordea Markets said, adding that "with today's figure the trend down remains strong".
The central bank's next rate meeting is due on June 21.
NAV's unadjusted unemployment rate fell to 2.2 percent, as expected, from 2.4 percent the previous month.
"The good May numbers from NAV show that the upswing continues with great strength," Labour and Social Affairs Minister Anniken Hauglie said in a statement.
The Norwegian crown currency strengthened against the euro to an intra-day high of 9.5150 by 0919 GMT from 9.5460 just ahead of the 0800 GMT data release. The crown later eased, trading at 9.5360.