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.

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.

Iceland’s seasonally adjusted unemployment rate stood at 5.6% in May 2026, unchanged from the previous month and remaining at its lowest level since December 2025. The number of unemployed persons held steady at 13,100. By gender, the jobless rate for men rose to 6.2% from 5.7% in April, while the rate for women eased to 4.9% from 5.5%. The youth unemployment rate, which measures job seekers aged 16 to 24, edged up to 13.0% from 12.9% in the previous month. Meanwhile, the employment rate increased to 76.5% from 75.5%, as the number of employed persons rose by 1,800 to a five-month high of 222,300. The labor force participation rate climbed to 81.1% from 80.0%. On a non-seasonally adjusted basis, the jobless rate jumped to an over five-year high of 8.3% in May from 6.6% in April.