Unemployment continues to drop in Iceland. Unemployment in October hit a record low of only 2.7% according to Statistics Iceland, a 1.1% drop year-over-year. In October 2015 unemployment was 3.8%, and 5% in 2014.
Read more: Economic recovery continues apace: Wages have risen by 10% past 12 months
The drop is all the more remarkable when we consider the fact that the labour participation rate has increased significantly at the same time. Statistics Iceland estimates that the activity rate, the share of the population, 16-74 years old, which is active in the labour pool is 82.5%, up from 80.7% at the same time last year.
A major reason for the drop in unemployment and growing labour participation rate is the boom in tourism. The Icelandic National Broadcasting Service RÚV reports that the number of travellers passing through Keflavík Airport grew by 36% in the first ten months of this year, compared to the first 10 months of 2015. The other reason is the extension of the tourism season into winter. According to Statistics Iceland the number of nights booked in September at year-round hotels increased by 37% year-over-year.
The CEO of Isavia, which manages Keflavík Airport, recently told RÚV that the Airport was looking to hire large numbers of workers, many of which would have to come from abroad, in the next year. The same is true for many companies in the tourism industry.
Unemployment continues to drop in Iceland. Unemployment in October hit a record low of only 2.7% according to Statistics Iceland, a 1.1% drop year-over-year. In October 2015 unemployment was 3.8%, and 5% in 2014.
Read more: Economic recovery continues apace: Wages have risen by 10% past 12 months
The drop is all the more remarkable when we consider the fact that the labour participation rate has increased significantly at the same time. Statistics Iceland estimates that the activity rate, the share of the population, 16-74 years old, which is active in the labour pool is 82.5%, up from 80.7% at the same time last year.
A major reason for the drop in unemployment and growing labour participation rate is the boom in tourism. The Icelandic National Broadcasting Service RÚV reports that the number of travellers passing through Keflavík Airport grew by 36% in the first ten months of this year, compared to the first 10 months of 2015. The other reason is the extension of the tourism season into winter. According to Statistics Iceland the number of nights booked in September at year-round hotels increased by 37% year-over-year.
The CEO of Isavia, which manages Keflavík Airport, recently told RÚV that the Airport was looking to hire large numbers of workers, many of which would have to come from abroad, in the next year. The same is true for many companies in the tourism industry.
