At the same time, resources and appropriations for the supervision and control of foreign workers’ wages and working conditions have been increased. As a result, foreign suppliers of services are losing much of their competitive edge in relation to Norwegian enterprises. The latest Directorate of Labour figures show that seasonally adjusted unemployment was 3.4 per cent in September. This is in line with the developments we envisaged in the June Inflation Report (2/05). Statistics Norway’s Labour Force Survey (LFS) presents a somewhat weaker picture of unemployment. Registered unemployment is on the decline in all regions. North-West Norway is no exception; this region has experienced a marked fall in the number of unemployed. Manufacturing is important for employment in North-West Norway. The share of employment in manufacturing in this region is higher than the national average. Activity is to a great extent export-oriented, as in the fishing, furniture and processing industries. Developments in the krone exchange rate are therefore important for North-West Norway. In this context, fiscal policy and the use of petroleum revenues play a key role. North-West Norway is, perhaps more than any other region, dependent on the fiscal rule being followed. With the current level of oil and gas production, shipyard order books are full. Large-scale projects such as Ormen Lange also have local spillover effects. The project provides contracts for subcontractors, and has also resulted in improvements in infrastructure in local areas. Information from Norges Bank’s regional network is important for Norges Bank’s analysis of the Norwegian economy.

Very high growth in demand for oil is one of the factors behind record high oil prices. In the first half of this year, the price of Brent Blend fluctuated for the most part between USD 45 and USD 55 per barrel. Oil prices have risen further this past summer, gradually reaching more than USD 60 per barrel. In the last few days, prices have been falling. Oil futures have also increased. Little excess production capacity in OPEC countries, combined with the prospect of lower production in non-OPEC countries, has probably influenced oil prices. At the same time, there are prospects of continued strong growth in demand in important oil-importing countries, such as China and a number of other emerging economies. Rising or persistently high oil prices may gradually dampen growth among our most important trading partners. The slowdown may occur gradually and will not necessarily be very pronounced, but there are now growing concerns that high oil prices may result in higher inflation and inflation expectations. High oil prices have a different impact in Norway than in oil-importing countries. A rise in oil prices improves our terms of trade. Other countries perceive this as an externally imposed tax. As a result of persistently high oil prices and expectations that oil prices will remain high, investment in the petroleum sector may reach record levels this year. The investment intentions survey for the petroleum sector points to very high growth. The scale and spillover effects of petroleum investment are highly uncertain.