The number of unemployed in February was around 10,300 according to seasonally adjusted figures from Statistics Iceland's Labour force survey, or 5.0% of the labour force. Seasonally adjusted activity rate was 80.4%, while seasonally adjusted employment rate was 77.5%.
Seasonally adjusted unemployment trends over the past 6 months are up slightly, or from 3.7% in September to 4.0% in February. Meanwhile, the trend in the employment rate changed from 77.8% to 77.6% during the same time period. On the other hand, the trend in activity rate went from 80.8% to 81.1% over the same period.
According to the unadjusted measures, it is estimated that around 203,100 persons aged 16-74 years were on the labour market in February 2020. This is equivalent to an activity rate of 78.2% (± 2.6). Of the workforce, it is estimated that approximately 192,900 (± 5,100) were employed, while 10,200 (± 3,000) were unemployed and looking for work. Thus, the employment rate was approximately 74.3% (± 2.7) while unemployment was 5.0% (± 1.5).
When the current unadjusted unemployment rate is compared to February 2019 it can be seen that the rate has increased by 1.8 percentage points while the unadjusted employment rate has dropped by 2.1 percentage points over the same period.
It should be noted that all numbers are rounded to the nearest hundred and results are weighted by sex and age groups. All numbers for February 2020 are preliminary until the end of the 1st quarter.
Flow Chart — Labour force 16–74 years — February 2020 unadjusted measures
Figures may not add up because of rounding. CI (95%) Unemployment rate: Total ±1.5; males ±2.6; females ±2.6.
| Table 1. Labour market in Feburary — unadjusted measures | ||||||
| CI | CI | CI | ||||
| 2018 | (±95%) | 2019 | (±95%) | 2020 | (±95%) | |
| Total 16–74 years | ||||||
| Activity rate | 79.4 | 2.5 | 79.0 | 2.8 | 78.2 | 2.6 |
| Employment rate | 77.5 | 2.5 | 76.4 | 2.9 | 74.3 | 2.7 |
| Unemployment rate | 2.4 | 0.9 | 3.2 | 1.2 | 5.0 | 1.5 |
| Hours of work | 38.7 | 1.3 | 38.8 | 1.2 | 38.8 | 1.3 |
| Labour force | 196,500 | 6,200 | 201,200 | 7,100 | 203,100 | 6,700 |
| Employed | 191,700 | 4,700 | 194,700 | 5,600 | 192,900 | 5,100 |
| Unemployed | 4,800 | 1,800 | 6,500 | 2,400 | 10,200 | 3,000 |
| Inactive | 51,000 | 6,200 | 53,600 | 6,300 | 56,500 | 7,200 |
| Est. population | 247,500 | • | 254,800 | • | 259,600 | • |
| Table 2. Labour market last 6 months — seasonal adjustment | ||||||
| Sep-19 | Oct-19 | Nov-19 | Dec-19 | Jan-20 | Feb-20 | |
| Total 16–74 years | ||||||
| Activity rate | 80.9 | 81.1 | 80.5 | 80.7 | 81.0 | 80.4 |
| Employment rate | 77.9 | 78.1 | 77.4 | 77.6 | 78.0 | 77.5 |
| Unemployment rate | 3.6 | 3.4 | 4.1 | 3.9 | 3.4 | 5.0 |
| Hours of work | 40.1 | 40.4 | 40.3 | 39.9 | 39.6 | 39.4 |
| Labour force | 208,100 | 210,200 | 205,800 | 209,100 | 208,700 | 208,500 |
| Employed | 200,500 | 202,800 | 198,200 | 202,200 | 202,700 | 199,600 |
| Unemployed | 6,800 | 7,100 | 7,100 | 7,300 | 7,000 | 10,300 |
| Inactive | 49,200 | 47,500 | 52,600 | 49,700 | 50,400 | 51,000 |
| Est. population | 257,300 | 257,900 | 258,400 | 258,900 | 259,100 | 259,600 |
| Table 3. Labour market last 6 months — seasonal adjustment trend | ||||||
| Sep-19 | Oct-19 | Nov-19 | Dec-19 | Jan-20 | Feb-20 | |
| Total 16–74 years | ||||||
| Activity rate | 80.8 | 80.8 | 80.7 | 80.7 | 80.9 | 81.1 |
| Employment rate | 77.8 | 77.8 | 77.7 | 77.6 | 77.9 | 77.6 |
| Unemployment rate | 3.7 | 3.7 | 3.7 | 3.8 | 3.7 | 4.0 |
| Hours of work | 40.1 | 40.2 | 40.2 | 40.1 | 40.0 | 39.8 |
| Labour force | 208,200 | 208,400 | 208,600 | 208,900 | 209,400 | 209,300 |
| Employed | 200,000 | 200,800 | 201,100 | 201,200 | 202,600 | 201,000 |
| Unemployed | 7,400 | 7,300 | 7,300 | 7,200 | 7,300 | 8,100 |
| Inactive | 49,200 | 49,500 | 49,700 | 49,800 | 49,700 | 50,300 |
| Est. population | 257,300 | 257,900 | 258,400 | 258,900 | 259,200 | 259,600 |
About the data
The Labour force survey in February 2020 covers 4 weeks, from February 3rd 2020 through February 29th 2020. A random sample of 1,530 persons 16–74 years old domiciled in Iceland were randomly selected. Excluding those who were deceased or residing abroad the net sample was 1,500 persons. A total of usable answers were obtained from 960 individuals, corresponding to a 64% response rate.
Iceland defines unemployment in line with the definition used by the International Labour Organization. According to this definition, those are considered as unemployed who 1) are without a paid job in the reference period, 2) are actively seeking a paid job on the Icelandic labour market, and 3) could start working within two weeks if they were offered a job.