Thanks to a booming economy Iceland continues to enjoy virtually universal employment. The latest figures from Statistics Iceland show that the unemployment rate in November was just 1.7%. Economists usually consider an unemployment rate of 3-4% natural, as it corresponds to the number of people who at any given point can be expected to be between jobs or looking for a job. A low unemployment rate is all the more remarkable when we keep in mind the high labor participation rate (80.5%).
Read more: GDP per capita in Iceland 28% above European average, 5th highest in Europe
According to Statistics Iceland the labor force, composed of people aged 16 to 74, was 198,100 persons. Thereof, 194,700 persons were employed and 3,400 persons were unemployed. The activity or labor participation rate was 80.5%, employment rate was 79.2% and unemployment rate was 1.7%.
Comparison between November 2016 and 2017 shows that the labour force has decreased by 1,000 and the activity rate has reduced by 3.5 percentage points. Even though the number of people in employment is almost the same the employment rate decreased by 2.9 percentage points. The number of unemployed decreased by 1,200 and the unemployment rate decreased by 0.6 points. Those inactive were 47,900 compared with 37,800 persons in November 2016.
Thanks to a booming economy Iceland continues to enjoy virtually universal employment. The latest figures from Statistics Iceland show that the unemployment rate in November was just 1.7%. Economists usually consider an unemployment rate of 3-4% natural, as it corresponds to the number of people who at any given point can be expected to be between jobs or looking for a job. A low unemployment rate is all the more remarkable when we keep in mind the high labor participation rate (80.5%).
Read more: GDP per capita in Iceland 28% above European average, 5th highest in Europe
According to Statistics Iceland the labor force, composed of people aged 16 to 74, was 198,100 persons. Thereof, 194,700 persons were employed and 3,400 persons were unemployed. The activity or labor participation rate was 80.5%, employment rate was 79.2% and unemployment rate was 1.7%.
Comparison between November 2016 and 2017 shows that the labour force has decreased by 1,000 and the activity rate has reduced by 3.5 percentage points. Even though the number of people in employment is almost the same the employment rate decreased by 2.9 percentage points. The number of unemployed decreased by 1,200 and the unemployment rate decreased by 0.6 points. Those inactive were 47,900 compared with 37,800 persons in November 2016.
