The unemployment rate in September 2022 was 3.6% according to seasonally adjusted figures from the Icelandic Labour Force Survey. The seasonally adjusted activity rate was 79.3% and the employment rate 76.5%. Seasonally adjusted unemployment rate decreased by 0.8 percentage points between months while the employment rate increased by 0.4 percentage points. The trend of the seasonally adjusted unemployment rate increased by 0.1 percentage points over the past six months.
Based on unadjusted measures from the Labour Force Survey, 215,100 (±6,900) individuals 16-74 years old were active on the labour market in September 2022, which is equivalent to an 78.5% (±2.5) activity rate. Of the labour force, 209,200 (±5,500) were employed and 5,900 (±2,500) unemployed and looking for a job. The employment rate was estimated to be 76.4% (±2.6) and the unemployment rate 2.7% (±1.2). Compared with September 2021, unemployment decreased by 0.1 percentage points between years while the employment rate increased by 0.5 percentage points.
Around 19,700 individuals had unmet need for employment (I.e. labour market slack) in September 2022 which corresponds to 9.0% of the labour force and potential labour force. Labour market slack has decreased by 3.1 percentage points between years, when compared to September 2021. The seasonally adjusted trend of labour market slack has increased by 0.3 percentage points over the past six months.
In all, 58,800 individuals were inactive on the labour market in September 2022 which equals 21.5% of the population. Around 12.200 individuals in the group of 16-24 year olds were inactive and 46.600 in the group of 25-74 year olds. The number of inactive people increased by 4.600 between months in total. The number increased by 5.900 in the group of 16-24 years old while it decreased by 1.300 in the group of 25-74 years. This is a traditional pattern in the autumn, when students leave the labour market to continue their studies.
Please note that the sum of sub-items might be inconsistent with the overall results due to rounding.
About the data
The Icelandic Labour Force Survey for September 2022 covers five weeks, from August 29 until October 2. The sample consisted of 1,924 individuals 16-74 years old with legal residence in Iceland. Excluding those from the sample who were living abroad or deceased, the net sample consisted of 1,885 individuals. Usable answers were obtained from 1,095 individuals which corresponds to a 58.1% response rate.