The seasonally adjusted unemployment rate in Iceland increased to 3.1 percent in October of 2018 from an upwardly revised 1.8 percent in September. It was the highest jobless rate since July, as the number of unemployed went up by 2,800 to 6,400 and employment decreased by 1,000 to 200,400. The number of people in the labour force rose by 1,800 to 206,800 and the activity rate went up to 81.9 percent from 81.6 percent in the previous month. Meantime, the employment rate fell to 79.4 percent from 80.2 percent. A year ago, the unemployment rate was higher at 3.7 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 2.70 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.