Unemployment rate 2.5%
In the fourth quarter of 2006, 4,300 persons were unemployed and in search of a job or 2.5% of the labour force. Both male and female unemployment rate was 2.5%. The unemployment rate was highest amongst persons aged 16-24 years old, or 7.0%.
In the fourth quarter of 2005 the unemployment rate was 2.7%, 3.0% amongst men and 2.2% amongst women. The unemployment rate was highest amongst young people aged 16-24 years old, or 7.9%.
Persons are classified as unemployed who have no employment, are actively seeking a job and could start working within two weeks or have found a job which starts within 3 months.
44.7% of unemployed persons have searched for a job for less than a month and 19.8% have found a job that starts within 3 months
Of those who were unemployed in the fourth quarter of 2006, 900 had found a job that starts within 3 months, or 19.8%, 1,900, or 44.7%, had searched for less than a month for a job and 600 persons, or 14.9%, had searched longer than 6 months.
| Table 1. Unemployed by duration of search for job | ||||||||
| 4. quarter 2003 | 4. quarter 2004 | 4. quarter 2005 | 4. quarter 2006 | |||||
| Number | % | Number | % | Number | % | Number | % | |
| Unemployed | 4,500 | 100.0 | 4,000 | 100.0 | 4,400 | 100.0 | 4,300 | 100.0 |
| Already found work | 200* | 4.4* | 300* | 8.2* | 700* | 16.2* | 900* | 19.8* |
| Less than one month | 1,500 | 32.6 | 1,200 | 29.3 | 2,100 | 46.3 | 1,900 | 44.7 |
| 1-2 months | 1,300 | 29.0 | 900* | 21.4* | 800* | 18.7* | 700* | 15.0* |
| 3-5 months | 700* | 14.4* | 700* | 16.4* | 300* | 7.8* | 200* | 5.6* |
| 6 months or more | 900* | 19.5* | 1,000 | 24.6 | 500* | 11.0* | 600* | 14.9* |
| Figures may not add up because of rounding | ||||||||
| * relative standard error over 20% | ||||||||
The number of employed persons increased by 8,400 and the activity rate was 82.1%
The number of employed persons in the fourth quarter of 2006 was 169,900 and had increased by 8,400 since the same quarter one year earlier. The number of persons in the labour force was 174,300, which corresponds to activity rate of 82.1%. The activity rate of men was 86.8% and the activity rate of women was 77.0%. The labour force is considered to consist of employed and unemployed persons. People are classified as working (employed) if they worked one hour or more in the reference week or were absent from work they usually carry out.
The activity rate was 81.3% in the fourth quarter of 2005. The activity rate of men was 85.1% and the activity rate of women was 77.4%. The number of persons in the labour market increased by 8,400 persons from the fourth quarter of 2005 to the fourth quarter of 2006.
Employed persons work 42,2 hours per week
In the fourth quarter of 2006 the average number of working hours of those who were working in the reference week was 42.2 hours. Men worked 48.0 hours and women worked 35.1 hours on average.
In the fourth quarter of 2005 the average working hours were 41.6 hours. Men worked 47.3 hours and women 34.9 hours.
| Table 2. Labour market | ||||||
| 4. quarter | ||||||
| 2003 | 2004 | 2005 | 2006 | |||
| Activity rate | Percentage | 80.0 | 79.7 | 81.3 | 82.1 | |
| Unemployment rate | Percentage | 2.9 | 2.5 | 2.7 | 2.5 | |
| Labour force | Estimated No. | 157,700 | 160,300 | 165,900 | 174,300 | |
| Employed | Estimated No. | 153,200 | 156,300 | 161,500 | 169,900 | |
| Unemployed | Estimated No. | 4,500 | 4,000 | 4,400 | 4,300 | |
| Employed full time | Estimated No. | 115,800 | 117,500 | 119,000 | 129,100 | |
| Employed part time | Estimated No. | 37,400 | 38,800 | 42,400 | 40,800 | |
| Working hours | Hours | 41.5 | 41.3 | 41.6 | 42.2 | |
| Working hours full time | Hours | 47.0 | 46.8 | 47.6 | 47.8 | |
| Working hours part time | Hours | 23.7 | 24.1 | 23.9 | 23.8 | |
| Inactive | Estimated No. | 39,400 | 40,700 | 38,100 | 38,100 | |
Implementation of the Labour Force Survey
Since 2003 Statistics Iceland has conducted a continuous labour force survey with quarterly results. The fourth quarter of 2006 covers 13 weeks, from 2nd of October to 31st of December. The total sample size was 3,908 persons aged 16-74 years old selected randomly from the National registry. When those who had passed away or those who were living abroad had been deducted from the sample the net sample was 3.795 persons. In total the number of usable answers was 3,201 which corresponds to 84.3% response rate. All figures have been weighted by sex and age groups. The confidence limits of the results on unemployment rate is ± 0,6%
Statistics