According to the Icelandic Labour Force Survey the number of persons in the labour force in May 2017 was 203,900. Of those in the labour force 193,000 persons were employed and 10,800 persons were unemployed. The activity rate was 85%, the employment rate was 80.5% and the unemployment rate was 5.3%. Comparison between May 2016 and 2017 shows that the activity rate decreased by 0.9 points of the total population. Number of employed decreased by 600 persons and the employment rate decreased by 2.1 point. Number of unemployed increased by 3,000 persons and the unemployment rate increased by 1.4 points. A characteristic of the Icelandic labor market is an increase in unemployment in spring, especially in May. The main reason is the increased demand for employment by young people. Of total unemployment in May 2017, 61.7% were in the age group 16-24 years old and the unemployment rate amongst them was 17.6%.
Figure 1. Labour force May 2017
Figures may not add up because of rounding.
Seasonally adjusted unemployment was 3.2% in May
The changes in the Icelandic labour market display a certain pattern as regards seasonality, as can be seen in the figures below. The seasonally adjusted estimate of the number of people in the labour force is 200,600 in May 2017. This corresponds to 83.5% activity rate which is 0.4 percentage points lower than in April 2017. The number of unemployed persons in May 2017 is estimated around 6,300, an increase by 1,400 since April. The seasonally adjusted unemployment rate was 3.2% in May compared to 2.4% in April and the seasonally adjusted employment rate was 80.9% in May. The trend for seasonally adjusted data in the last six months shows that the unemployment rate has decreased by 0.3 percentage points also displaying a 0.3 point decrease in the last 12 months. The employment rate has increased by 0.5 points in the last six months and in the last 12 months it has increased by 0.7 points.
Implementation
May 2017 is divided into four weeks, from 1st to 28th of May. The total sample size was 1,205 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 1,164 persons. In total, the number of usable answers was 788 which correspond to 67.7% response rate. All figures have been weighted by sex and age groups. The confidence limit of the estimate on activity rate is ±2.3 points, employment rate ±2.7 points and unemployment rate ±1.8 points. Figures may not add up because of rounding. Results for the first two months in every quarter of the year are preliminary until the end of the quarter.
| Table 1. Labour market in May - Original | ||||||
| CI | CI | CI | ||||
| 2015 | (±95%) | 2016 | (±95%) | 2017 | (±95%) | |
| Total 16-74 years | ||||||
| Activity rate | 84.2 | 2.3 | 85.9 | 2.2 | 85.0 | 2.3 |
| Employment rate | 78.5 | 2.6 | 82.6 | 2.5 | 80.5 | 2.7 |
| Unemployment rate | 6.8 | 1.8 | 3.9 | 1.5 | 5.3 | 1.8 |
| Hours of work | 41.1 | 1.3 | 41.4 | 1.3 | 41.8 | 1.4 |
| Labour force | 196,200 | 5,300 | 201,400 | 5,100 | 203,900 | 5,600 |
| Employed | 182,900 | 6,000 | 193,600 | 5,800 | 193,000 | 6,500 |
| Unemployed | 13,200 | 3,500 | 7,800 | 3,000 | 10,800 | 3,800 |
| Inactive | 36,900 | 5,300 | 33,100 | 5,100 | 36,000 | 5,600 |
| Est. population | 233,000 | • | 234,500 | • | 239,800 | • |
| Table 2. Labour market last 6 months - Seasonal adjustment | ||||||
| Dec-16 | Jan-17 | Feb-17 | Mar-17 | Apr-17 | May-17 | |
| Total 16-74 years | ||||||
| Activity rate | 83.9 | 83.1 | 83.9 | 84.6 | 84.0 | 83.5 |
| Employment rate | 81.4 | 79.9 | 81.3 | 83.2 | 81.9 | 80.9 |
| Unemployment rate | 3.0 | 3.8 | 3.1 | 1.7 | 2.4 | 3.2 |
| Hours of work | 40.2 | 40.4 | 40.1 | 40.1 | 40.5 | 40.5 |
| Labour force | 198,900 | 199,400 | 200,400 | 202,100 | 202,100 | 200,600 |
| Employed | 193,000 | 191,900 | 194,300 | 198,600 | 197,200 | 194,300 |
| Unemployed | 5,900 | 7,500 | 6,100 | 3,500 | 4,900 | 6,300 |
| Inactive | 38,100 | 40,600 | 38,500 | 36,700 | 38,600 | 39,600 |
| Est. population | 237,000 | 240,100 | 238,900 | 238,800 | 240,700 | 240,200 |
| Table 3. Labour market last 6 months - Seasonal adjustment trend | ||||||
| Dec-16 | Jan-17 | Feb-17 | Mar-17 | Apr-17 | May-17 | |
| Total 16-74 years | ||||||
| Activity rate | 83.6 | 83.6 | 83.7 | 83.9 | 83.9 | 83.9 |
| Employment rate | 81.2 | 81.2 | 81.4 | 81.6 | 81.7 | 81.7 |
| Unemployment rate | 2.9 | 2.8 | 2.8 | 2.7 | 2.7 | 2.6 |
| Hours of work | 40.2 | 40.2 | 40.2 | 40.3 | 40.3 | 40.3 |
| Labour force | 199,000 | 199,300 | 200,200 | 201,000 | 201,100 | 200,900 |
| Employed | 193,300 | 193,700 | 194,600 | 195,600 | 195,800 | 195,600 |
| Unemployed | 5,700 | 5,600 | 5,500 | 5,400 | 5,300 | 5,300 |
| Inactive | 38,900 | 39,100 | 38,900 | 38,600 | 38,500 | 38,500 |
| Est. population | 237,900 | 238,400 | 239,000 | 239,600 | 239,600 | 239,300 |