The seasonally adjusted unemployment rate in Iceland decreased to 1.7 percent in September of 2018 from a downwardly revised 2.6 percent in August. It was the lowest jobless rate since May, as the number of unemployed went down by 1,800 to 3,600 and employment rose by 2,400 to 201,300. The number of people in the labour force fell by 600 to 204,900 and the activity rate went down slightly to 81.6 percent from 81.7 percent. Meantime, the employment rate increased to 80.2 percent from 79.5 percent. A year ago, the unemployment rate was higher at 3.2 percent. Unemployment Rate in Iceland averaged 2.45 percent from 1970 until 2018, reaching an all time high of 8.90 percent in November of 2010 and a record low of 0.10 percent in August of 1972.
Unemployment Rate in Iceland is expected to be 3.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Unemployment Rate in Iceland to stand at 2.30 in 12 months time. In the long-term, the Iceland Unemployment Rate is projected to trend around 3.40 percent in 2020, according to our econometric models.