Iceland Unemployment Rate Rises to 4.4%

Iceland’s seasonally adjusted unemployment rate fell sharply to 4.5% in December 2025, down from 6.9% in November. While unemployment typically declines in December due to seasonal factors, the rate remained above the 3.9% recorded in the same month a year earlier. The number of unemployed persons declined by 5,900 over the month, bringing the total to 10,500. Unemployment decreased across both genders. The rate for men dropped to 4.5% from 6.1%, while female unemployment declined sharply to 4.4% from 7.7%. The youth unemployment rate, which tracks job-seekers aged 14 to 26, also improved, falling to 10.8% from 13.5% in the previous month. The employment rate increased to 76.9% from 75.6%, corresponding to an increase of 1,600, with 223,400 employed individuals. Meanwhile, the labor force participation rate fell to 80.5% from 81.2%. On a non-seasonally adjusted basis, the unemployment rate also showed strong improvement, decreasing to 4.2% in December from 6.5% in November.

Iceland’s seasonally adjusted unemployment rate climbed to 6.5% in November 2025 from 4.4% in the previous month. This marked the highest reading since April 2021, as the number of unemployed persons increased by 5,700 from a month ago to 16,500. By gender, the unemployment rate for men jumped to 6.2% from 3.2%, while the rate for women rose to 7.9% from 6%. The youth unemployment rate, which measures job-seekers between 16 and 24 years old, grew sharply to 13.3% from 7.4% in the prior month. Meanwhile, the employment rate decreased to 75.5% from 77.5%, with the number of employed persons dropping by 4,600 to 220,700. The labor force participation rate remained largely unchanged at 81.1%. On a non-seasonally adjusted basis, the unemployment rate rose to 6.5% in November from 4.4% in the preceding period.

Iceland’s seasonally adjusted unemployment rate rose to 4.4% in October 2025 from an upwardly revised 3.9% in the previous month. The number of unemployed persons increased by 1,100 to 10,700. By gender, the unemployment rate for men declined to 3.3% from 3.9%, while the rate for women jumped to 5.8% from 3.9%. The youth unemployment rate, which measures job-seekers between 16 and 24 years old dropped sharply to 6.9% from 9.7% in the previous month. Meanwhile, the employment rate inched up to 78.2% from 78.0%, with the number of employed persons fell by 8,400 to 230,700. The labor force participation increased to 81.8% in October 2025 from downwardly revised 81.2% in the prior month. On a non-seasonally adjusted basis, the unemployment rate rose to 4.4% in October from 3.2% in September.