Icelandic employees expect to add 1,000 employees over the next six months, according to a survey conducted by Business Iceland and The Icelandic Central Bank. Companies in the tourism industry and construction expect to face serious labour shortages in the coming months.
Read more: Icelandic businessmen not been as optimistic since the fall of 2007
Construction and tourism industries facing labour shortages
Payrolls are expected to grow fastest in construction, tourism and retail. Over 40% of companies in tourism expect to add staff over the next half year. The looming labour shortage in tourism and construction are connected, as the booming tourism industry has created a sudden demand for more hotels at a time when the strong economic recovery, which is of course largely driven by tourism, creates demand for residential construction.
A human resource manager at a touring company interviewed by the Icelandic National Broadcasting Service RÚV, said companies in the sector are getting worried. Touring companies are already facing a shortage of coach drivers and experienced tour-guides.
Positive news, but worrying signs of overheating
Gylfi Arnbjörnsson, the president of the Federation of Labour tells RÚV the labour movement is pleased with the news, pointing out there is still some unemployment in Iceland. “Of course it is good news the economy is turning around and that we are seeing a strong jobs growth, because we are still seeing unemployment, even if it has decreased a lot in the past years. There are still too many of our members without jobs.”
However, Gylfi adds that there are some worrying signs of the economy overheating.
Icelandic employees expect to add 1,000 employees over the next six months, according to a survey conducted by Business Iceland and The Icelandic Central Bank. Companies in the tourism industry and construction expect to face serious labour shortages in the coming months.
Read more: Icelandic businessmen not been as optimistic since the fall of 2007
Construction and tourism industries facing labour shortages
Payrolls are expected to grow fastest in construction, tourism and retail. Over 40% of companies in tourism expect to add staff over the next half year. The looming labour shortage in tourism and construction are connected, as the booming tourism industry has created a sudden demand for more hotels at a time when the strong economic recovery, which is of course largely driven by tourism, creates demand for residential construction.
A human resource manager at a touring company interviewed by the Icelandic National Broadcasting Service RÚV, said companies in the sector are getting worried. Touring companies are already facing a shortage of coach drivers and experienced tour-guides.
Positive news, but worrying signs of overheating
Gylfi Arnbjörnsson, the president of the Federation of Labour tells RÚV the labour movement is pleased with the news, pointing out there is still some unemployment in Iceland. “Of course it is good news the economy is turning around and that we are seeing a strong jobs growth, because we are still seeing unemployment, even if it has decreased a lot in the past years. There are still too many of our members without jobs.”
However, Gylfi adds that there are some worrying signs of the economy overheating.
