There were 209,700 persons aged from 16 to 74 in the labour force in June 2018, according to the Icelandic Labour Force Survey. Thereof, 203,200 persons were employed and 6,400 persons were unemployed. The activity rate was 84.0%, employment rate was 81.5% and unemployment rate was 3.1%.
Comparison between June 2017 and 2018 shows that while the labour force increased by 3,900, the activity rate decreased by 1.4 percentage points. The number of people in employment increased by 2,100 although the share of people employed of the estimated population decreased by 2.1 percentage points.
The number of unemployed increased by 1,700 since June 2017, with a increase in the unemployment rate by 0.8 percentage points. Those who were considered inactive in June 2018 were 39,800 compared with 35,000 persons in June 2017.
Flow Chart — Labour force 16–74 years — June 2018
Figures may not add up because of rounding. CI (95%) Unemployment rate: Total ±1.2; males ±1.6; females ±2.1.
Seasonally adjusted unemployment was 3.4% in June 2018
Changes in the Icelandic labour market display a seasonal pattern as can be seen in the figures below. The seasonally adjusted estimate of the number of people in the labour force was 201,200 in June 2018. This corresponds to an 80.9% activity rate which is a 0.2 percentage point decrease from the activity rate in May. The seasonally adjusted number of unemployed persons in June 2018 was estimated to be 6,900 or 3.4%. The seasonally adjusted employment rate was 78.1% in June 2018, which is a 1.6 percentage point decrease since May.
A note of caution is necessary when examining the seasonally adjusted unemployment rate for the latest months. There is a considerable change in both the direct measure of unemployment and the seasonally adjusted data, particularly among young people aged 16 to 24. These seasonal changes are to be expected as this group usually starts looking for work by the end of the school year. The seasonal adjustment model works on the assumption that unemployment is usually higher in May than in June. In 2018 unemployment was very similar in May and June which has the effect that the model predicts a lower level of unemployment in May than was the case.
The trend for seasonally adjusted data for activity, employment and unemployment rates in the last six months shows these labour market numbers mostly stayed the same. Hence, the Icelandic labour market may be viewed as stable and that these labour market numbers are in line with previously published labour market numbers over the last 6 months.
Implementation
June 2018 is divided into four weeks, from 4th of June to 1st of July. The total sample size for the Labour Force Survey was 1,535 persons, 16–74 years old, selected randomly from the registered population. When individuals out of scope had been removed from the sample, the net sample was 1,506 persons. In total, the number of answers was 994 corresponding to 66.0% response rate.
The results are weighted by sex and age groups. The confidence limit of the estimates on activity rate is ±2.2 percentage points, employment rate ±2.3 percentage points and unemployment rate ±1.3 percentage points, for June 2018. Figures may not add up because of rounding. It should be noted that all numbers for the first two months in every quarter of the year are preliminary until the end of the quarter.
| Table 1. Labour market in June — Original | ||||||
| CI | CI | CI | ||||
| 2016 | (±95%) | 2017 | (±95%) | 2018 | (±95%) | |
| Total 16–74 years | ||||||
| Activity rate | 85.2 | 2 | 85.5 | 2.1 | 84.0 | 2.2 |
| Employment rate | 83.4 | 2.2 | 83.5 | 2.2 | 81.5 | 2.3 |
| Unemployment rate | 2.2 | 1 | 2.3 | 1.1 | 3.1 | 1.3 |
| Hours of work | 41.9 | 1.3 | 41.6 | 1.2 | 41.6 | 1.1 |
| Labour force | 200,800 | 4,800 | 205,800 | 5,000 | 209,700 | 5,400 |
| Employed | 196,400 | 5,100 | 201,100 | 5,400 | 203,200 | 5,900 |
| Unemployed | 4,400 | 2,000 | 4,700 | 2,200 | 6,400 | 2,700 |
| Inactive | 34,800 | 4,800 | 35,000 | 5,000 | 39,800 | 5,400 |
| Est. population | 235,600 | • | 240,800 | • | 249,500 | • |
| Table 2. Labour market last 6 months — seasonal adjustment | ||||||
| Jan-18 | Feb-18 | Mar-18 | Apr-18 | May-18 | Jun-18 | |
| Total 16–74 years | ||||||
| Activity rate | 82.9 | 81.0 | 82.1 | 82.4 | 81.0 | 80.9 |
| Employment rate | 80.0 | 78.9 | 80.3 | 79.3 | 79.7 | 78.1 |
| Unemployment rate | 3.5 | 2.6 | 2.2 | 3.7 | 1.6 | 3.4 |
| Hours of work | 40.0 | 39.3 | 40.0 | 40.6 | 38.7 | 39.5 |
| Labour force | 205,200 | 200,600 | 204,600 | 203,000 | 200,900 | 201,200 |
| Employed | 198,100 | 195,500 | 200,000 | 195,500 | 197,600 | 194,300 |
| Unemployed | 7,200 | 5,100 | 4,500 | 7,500 | 3,300 | 6,900 |
| Inactive | 42,300 | 47,100 | 44,500 | 43,500 | 47,000 | 47,600 |
| Est. population | 247,500 | 247,700 | 249,100 | 246,500 | 247,900 | 248,800 |
| Table 3. Labour market last 6 months — seasonal adjustment trend | ||||||
| Jan-18 | Feb-18 | Mar-18 | Apr-18 | May-18 | Jun-18 | |
| Total 16–74 years | ||||||
| Activity rate | 82.1 | 82.0 | 82.0 | 82.0 | 82.0 | 81.9 |
| Employment rate | 79.6 | 79.6 | 79.6 | 79.6 | 79.6 | 79.6 |
| Unemployment rate | 3.0 | 3.0 | 3.0 | 2.9 | 2.9 | 2.8 |
| Hours of work | 39.9 | 39.9 | 39.9 | 39.9 | 39.9 | 39.9 |
| Labour force | 202,300 | 202,500 | 202,500 | 202,600 | 202,700 | 202,700 |
| Employed | 196,200 | 196,500 | 196,500 | 196,700 | 196,800 | 196,900 |
| Unemployed | 6,100 | 6,000 | 6,000 | 5,900 | 5,900 | 5,800 |
| Inactive | 44,200 | 44,300 | 44,300 | 44,400 | 44,500 | 44,700 |
| Est. population | 246,500 | 246,800 | 246,800 | 247,000 | 247,200 | 247,400 |