According to the Icelandic Labour Force Survey the number of persons in the labour force in August 2016 was 205,200. Of those in the labour force 199,200 persons were employed and 6,000 persons were unemployed. The activity rate was 85.9%, the employment rate was 83.3% and the unemployment rate was 2.9%. Comparison between August 2015 and 2016 shows increase in activity by 1.6 percentage points of the total population. Number of employed increased by 11,700 persons and the rate went up by 2.2 points. Number of unemployed decreased by 1,200 persons and the unemployment rate went down by 0.8 points.
Figure 1. Labour force August 2016
Figures may not add up because of rounding.
Seasonally adjusted unemployment was 3.1% in August
The changes in the Icelandic labour market display a certain pattern as regards to seasonality, as can be seen in the figures below. The seasonally adjusted data show that in August 2016 the number of people in the labour force was 200,400 corresponding to 84.5% activity rate. The number of unemployed persons, in August 2016, amounted to 6,200 and had increased by 500 since July. The unemployment rate was 3.1% in August compared to 2.9% in July. According to the seasonal adjustment the employment rate was 81.9% in August. Between July and August, the employment rate increased by 1.1 points the unemployment rate increased by 0.2 points. The trend for seasonally adjusted data in the last six months shows that the unemployment rate has decreased by 0.2 percentage points and by one point for the last 12 months. The employment rate has increased by 0.4 points in the last six months and by 1.8 points in the last 12 months.
Implementation
August 2016 is divided into four weeks, from the 1st to the 28th of August. The total sample size was 1,216 persons, 16–74 years, randomly chosen from the Population Register. When those who had passed away and those who were living abroad had been deducted from the sample the net sample was 1,177 persons. In total the number of usable answers was 853 which correspond to 72.5% response rate. All figures have been weighted by sex and age groups. The confidence limit of the results on activity rate is ±2.3 points, employment rate is ±2.5 points and unemployment rate is ±1.3 points. Figures may not add up because of rounding.
| Table 1. Labour market in July - Original | ||||||
| CI | CI | CI | ||||
| 2014 | (±95%) | 2015 | (±95%) | 2016 | (±95%) | |
| Total 16-74 years | ||||||
| Activity rate | 83.0 | 2.4 | 84.2 | 2.3 | 85.9 | 2.3 |
| Employment rate | 79.1 | 2.6 | 81.1 | 2.5 | 83.3 | 2.5 |
| Unemployment rate | 4.7 | 1.5 | 3.7 | 1.4 | 2.9 | 1.3 |
| Hours of work | 41.3 | 1.3 | 40.8 | 1.3 | 40.2 | 1.3 |
| Labour force | 192,100 | 5,500 | 194,700 | 5,300 | 205,200 | 5,500 |
| Employed | 183,000 | 5,900 | 187,500 | 5,800 | 199,200 | 5,900 |
| Unemployed | 9,000 | 2,800 | 7,200 | 2,700 | 6,000 | 2,600 |
| Inactive | 39,400 | 5,500 | 36,500 | 5,300 | 33,800 | 5,500 |
| Est. population | 231,400 | • | 231,200 | • | 239,000 | • |
| Table 2. Labour market last 6 months - Seasonal adjustment | ||||||
| Mar-16 | Apr-16 | May-16 | Jun-16 | Jul-16 | Aug-16 | |
| Total 16-74 years | ||||||
| Activity rate | 83.2 | 84.1 | 83.5 | 82.8 | 83.2 | 84.5 |
| Employment rate | 80.5 | 81.1 | 81.7 | 80.8 | 80.8 | 81.9 |
| Unemployment rate | 3.3 | 3.6 | 2.1 | 2.5 | 2.9 | 3.1 |
| Hours of work | 40.3 | 40.3 | 40.2 | 39.8 | 39.6 | 39.5 |
| Labour force | 193,800 | 197,100 | 195,500 | 193,400 | 198,000 | 200,400 |
| Employed | 187,500 | 190,000 | 191,400 | 188,600 | 192,200 | 194,200 |
| Unemployed | 6,300 | 7,100 | 4,100 | 4,800 | 5,700 | 6,200 |
| Inactive | 39,200 | 37,300 | 38,600 | 40,100 | 39,900 | 36,700 |
| Est. population | 233,000 | 234,400 | 234,200 | 233,600 | 237,900 | 237,000 |
| Table 3. Labour market last 6 months - Seasonal adjustment trend | ||||||
| Mar-16 | Apr-16 | May-16 | Jun-16 | Jul-16 | Aug-16 | |
| Total 16-74 years | ||||||
| Activity rate | 82.9 | 83.1 | 83.3 | 83.5 | 83.7 | 83.8 |
| Employment rate | 80.4 | 80.6 | 80.9 | 81.1 | 81.3 | 81.4 |
| Unemployment rate | 3.1 | 3.0 | 2.9 | 2.8 | 2.9 | 2.9 |
| Hours of work | 40.2 | 40.1 | 40.0 | 39.9 | 39.8 | 39.7 |
| Labour force | 194,700 | 195,200 | 195,800 | 196,500 | 197,300 | 198,100 |
| Employed | 188,800 | 189,400 | 190,100 | 190,900 | 191,700 | 192,400 |
| Unemployed | 6,000 | 5,800 | 5,700 | 5,600 | 5,600 | 5,700 |
| Inactive | 40,100 | 39,700 | 39,300 | 38,900 | 38,500 | 38,200 |
| Est. population | 234,800 | 234,900 | 235,000 | 235,300 | 235,800 | 236,300 |