Iceland’s seasonally adjusted unemployment rate rose to 6.8% in August 2026, the highest level since February, following an upwardly revised 6.6% in July. The number of unemployed persons increased by 0.7 thousand month-on-month to 15.9 thousand, including 10.9 thousand men and 5.0 thousand women. The youth unemployment rate, which measures job-seekers between 16 and 24 years old, climbed to 14.2% from 6.7%, reaching its highest level since May. Meanwhile, the employment rate edged up to 73.7% from 73.5% in July, with the number of employed individuals rising by 1.2 thousand to 217.8 thousand. The labor force participation rate ticked higher to 79.0% from 78.7%. On a non-seasonally adjusted basis, the unemployment rate rose to 6.0% in August from 5.5% in the previous month. source: Statistics Iceland

Unemployment Rate in Iceland increased to 6.80 percent in August from 6.60 percent in July of 2026. Unemployment Rate in Iceland averaged 2.90 percent from 1970 until 2026, reaching an all time high of 10.30 percent in June of 2009 and a record low of 0.10 percent in August of 1972. This page provides the latest reported value for - Iceland Unemployment Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Iceland Unemployment Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2026.

Unemployment Rate in Iceland increased to 6.80 percent in August from 6.60 percent in July of 2026. Unemployment Rate in Iceland is expected to be 5.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Iceland Unemployment Rate is projected to trend around 5.00 percent in 2027 and 4.20 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-08-26 09:00 AM
Unemployment Rate
Jul 6.3% 5.1% 5.2%
2026-09-23 09:00 AM
Unemployment Rate
Aug 6.8% 6.6% 6.3%
2026-10-21 09:00 AM
Unemployment Rate
Sep 6.8% 5.7%


Related Last Previous Unit Reference
Employed Persons 217800.00 216600.00 Aug 2026
Employment Rate 73.70 73.50 percent Aug 2026
Job Vacancies 187.00 197.00 Aug 2026
Job Vacancy Rate 2.80 1.70 percent Jun 2026
Labor Force Participation Rate 79.00 78.70 percent Aug 2026
Unemployed Persons 15900.00 14500.00 Aug 2026
Unemployment Rate 6.80 6.60 percent Aug 2026
Real Wage Growth 0.00 0.40 percent Aug 2026
Wages 982000.00 912000.00 ISK/Month Dec 2025
Youth Unemployment Rate 14.20 6.70 percent Aug 2026


Iceland Unemployment Rate
In Iceland, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.
Actual Previous Highest Lowest Dates Unit Frequency
6.80 6.60 10.30 0.10 1970 - 2026 percent Monthly
SA

News Stream
Iceland Jobless Rate Rises to 6-Month High
Iceland’s seasonally adjusted unemployment rate rose to 6.8% in August 2026, the highest level since February, following an upwardly revised 6.6% in July. The number of unemployed persons increased by 0.7 thousand month-on-month to 15.9 thousand, including 10.9 thousand men and 5.0 thousand women. The youth unemployment rate, which measures job-seekers between 16 and 24 years old, climbed to 14.2% from 6.7%, reaching its highest level since May. Meanwhile, the employment rate edged up to 73.7% from 73.5% in July, with the number of employed individuals rising by 1.2 thousand to 217.8 thousand. The labor force participation rate ticked higher to 79.0% from 78.7%. On a non-seasonally adjusted basis, the unemployment rate rose to 6.0% in August from 5.5% in the previous month.
2026-09-23
Iceland Unemployment Rate Jumps in July
Iceland’s seasonally adjusted unemployment rate rose to 6.3% in July 2026 from 5.0% in June, reaching its highest level in four months. The number of unemployed people increased by 3,000 month-on-month to 14,500. By gender, the unemployment rate for men rose to 5.7% from 3.4% in June, while the rate for women remained unchanged to 7.0%. Youth unemployment, covering job seekers aged 16 to 24, fell sharply to 6.4% from 12.0% in the previous month. Meanwhile, the employment rate edged down to 73.8%, with the number of employed people falling by 600 to 216,700. The labor force participation rate also inched up to 78.7% from 78.6%. On a non-seasonally adjusted basis, Iceland’s unemployment rate fell to 5.5% in July from 3.9% in June.
2026-08-26
Iceland Jobless Rate Eases to 6-Month Low
Iceland’s seasonally adjusted unemployment rate eased to 5.0% in June 2026 from 5.6% in May, remaining at its lowest level since December 2025. The number of unemployed people fell by 1,600 month-on-month to 11,500. By gender, the unemployment rate for men declined sharply to 3.3% from 6.3% in May, while the rate for women rose to 7.1% from 4.9%. Youth unemployment, covering job seekers aged 16 to 24, decreased to 12.0% from 13.0% in the previous month. Meanwhile, the employment rate edged down to 74.4%, with the number of employed people falling by 2,300 to 218,100. The labor force participation rate also declined to 78.4% from 80.8%. On a non-seasonally adjusted basis, Iceland’s unemployment rate fell to 3.9% in June from 8.3% in May.
2026-07-22