According to the Icelandic Labour force survey, the unemployment rate among individuals aged 16 to 74 was 4.2% in December 2025. The number of unemployed persons was approximately 9,800, the employment rate stood at 76%, corresponding to about 221,900 individuals and the activity rate was 79.3%, representing about 231,700 people in the labour force.
Compared with the same month in 2024, unemployment increased by 0.5 percentage points, the employment rate decreased by 1.1 percentage points and the activity decreased by 0.7 percentage points.
Seasonally adjusted figures for December 2025 showed an unemployment rate of 4.5%. The seasonally adjusted employment rate was 76.9%, and the activity rate was 80.5%. Between November and December, seasonally adjusted unemployment decreased by 2.7 percentage points, the employment rate increased by 0.3 percentage points while the activity rate decreased by 1.9 percentage points.