According to the Icelandic Labour Force Survey the number of persons in the labour force in March 2017 was 202,800. Of those in the labour force 199,300 persons were employed and 3,400 persons were unemployed. The activity rate was 84.9%, the employment rate was 83.4% and the unemployment rate was 1.7%. Comparison between March 2016 and 2017 shows increase in activity by 3.1 percentage points of the total population. Number of employed increased by 15,500 persons and the employment rate increased by 4.7 points. Number of unemployed decreased by 3,800 persons and the unemployment rate decreased by 2.1 points.
Unemployment, as mesured in the Labour Force Survey, has not been this low since November 2007 when it measured 1.3%.
Figure 1. Labour force March 2017
Figures may not add up because of rounding.
Seasonally adjusted unemployment was 1.6% in March
The changes in the Icelandic labour market display a certain pattern as regards seasonality, as can be seen in the figures below. The seasonal adjustment estimates the number of people in the labour force being 201,700 in March 2017, corresponding to 84.7% activity rate which is 0.9 percentage points higher than in February 2017. The number of unemployed persons, in March 2017, is estimated around 3,200 and decreased by 2,700 since February. The unemployment rate was 1.6% in March compared to 3% in February. According to the seasonal adjustment, the employment rate was 83.3% in March. The trend for seasonally adjusted data in the last six months shows that the unemployment rate has decreased by 0.3 percentage points, but in the last 12 months it has decreased by 0.6 points. The employment rate has increased by 0.3 points in the last six months but increased by 1.2 points in the last 12 months.
Implementation
March 2017 is divided into five weeks, from 27th of February to 2nd of April 2017. The total sample size was 1,513 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 1,480 persons. In total the number of usable answers was 1.034 which corresponds to 69.9% response rate. All figures have been weighted by sex and age groups. The confidence limit of the results on activity rate is ±2.1 points, employment rate is ±2.2 points and unemployment rate is ±0.9 points. Figures may not add up because of rounding.
| Table 1. Labour market in March - Original | ||||||
| CI | CI | CI | ||||
| 2015 | (±95%) | 2016 | (±95%) | 2017 | (±95%) | |
| Total 16-74 years | ||||||
| Activity rate | 82.0 | 2.4 | 81.8 | 2.2 | 84.9 | 2.1 |
| Employment rate | 78.6 | 2.6 | 78.7 | 2.4 | 83.4 | 2.2 |
| Unemployment rate | 4.0 | 1.4 | 3.8 | 1.3 | 1.7 | 0.9 |
| Hours of work | 39.3 | 1.3 | 38.2 | 1.3 | 39.9 | 1.1 |
| Labour force | 190,100 | 5,600 | 191,000 | 5,200 | 202,800 | 5,100 |
| Employed | 182,400 | 6,000 | 183,800 | 5,600 | 199,300 | 5,300 |
| Unemployed | 7,700 | 2,700 | 7,200 | 2,500 | 3,400 | 1,900 |
| Inactive | 41,800 | 5,600 | 42,600 | 5,200 | 36,200 | 5,100 |
| Est. population | 231,900 | • | 233,600 | • | 239,000 | • |
| Table 2. Labour market last 6 months - Seasonal adjustment | ||||||
| Oct-16 | Nov-16 | Dec-16 | Jan-17 | Feb-17 | Mar-17 | |
| Total 16-74 years | ||||||
| Activity rate | 83.4 | 84.5 | 83.9 | 83.0 | 83.8 | 84.7 |
| Employment rate | 81.0 | 82.1 | 81.6 | 80.2 | 81.3 | 83.3 |
| Unemployment rate | 2.8 | 2.8 | 2.8 | 3.4 | 3.0 | 1.6 |
| Hours of work | 40.0 | 40.1 | 40.2 | 40.5 | 39.9 | 39.9 |
| Labour force | 198,000 | 200,100 | 198,600 | 198,800 | 199,800 | 201,700 |
| Employed | 192,400 | 194,500 | 193,100 | 192,000 | 193,900 | 198,500 |
| Unemployed | 5,600 | 5,600 | 5,500 | 6,700 | 5,900 | 3,200 |
| Inactive | 39,400 | 36,700 | 38,000 | 40,700 | 38,700 | 36,500 |
| Est. population | 237,400 | 236,800 | 236,500 | 239,500 | 238,500 | 238,100 |
| Table 3. Labour market last 6 months - Seasonal adjustment trend | ||||||
| Oct-16 | Nov-16 | Dec-16 | Jan-17 | Feb-17 | Mar-17 | |
| Total 16-74 years | ||||||
| Activity rate | 83.9 | 83.8 | 83.7 | 83.6 | 83.7 | 83.9 |
| Employment rate | 81.5 | 81.5 | 81.4 | 81.4 | 81.6 | 81.8 |
| Unemployment rate | 2.8 | 2.8 | 2.7 | 2.7 | 2.6 | 2.5 |
| Hours of work | 40.1 | 40.1 | 40.1 | 40.1 | 40.0 | 40.0 |
| Labour force | 198,400 | 198,700 | 198,700 | 198,900 | 199,700 | 200,500 |
| Employed | 192,800 | 193,200 | 193,300 | 193,600 | 194,500 | 195,500 |
| Unemployed | 5,600 | 5,500 | 5,400 | 5,300 | 5,200 | 5,000 |
| Inactive | 38,200 | 38,400 | 38,800 | 39,000 | 38,800 | 38,400 |
| Est. population | 236,600 | 237,100 | 237,500 | 237,900 | 238,400 |
239,000 |