According to the Icelandic Labour Force Survey the number of persons in the labour force in June 2016 was 201,800. Of those in the labour force 197,100 persons were employed and 4,700 persons were unemployed. The activity rate was 85.3%, the employment rate was 83.3% and the unemployment rate was 2.3%. Comparison between June 2015 and 2016 shows decrease in activity by 1.3 percentage points of the total population. Number of employed increased by 700 persons but the rate went down by 0.8 points. Number of unemployed decreased by 1.100 persons and the unemployment rate went down by 0.6 points. Unemployment has not been this low, in the month of June, since the year 2008 when it was measured at 2.2%.
Figure 1. Labour force, June 2016
Figures may not add up because of rounding.
Seasonally adjusted unemployment was 2.6% in June
The changes in the Icelandic labour market display a certain pattern as regards to seasonality, as can be seen in the figures below. Thus unemployment according to the Icelandic labour force survey has always increased in April and May due to increased demand for summer jobs by youth (16-24 years) and is usually at the lowest point during the summer months (June, July and August). The seasonally adjusted data show that in June 2016 the number of people in the labour force was 193,800 corresponding to 83.1% activity rate. The number of unemployed persons, in June 2016, amounted to 5,100 and had increased by 800 since May. The unemployment rate was 2.6% in June compared to 2.2% in May. According to the seasonal adjustment the employment rate was 80.9% in June. Between May and June, the employment rate increased by one point and the unemployment rate increased by 0.4 points. The trend for seasonally adjusted data in the last six months shows that the unemployment rate has decreased by 0.4 percentage points and by 1.2 points for the last 12 months. The employment rate has increased by 0.8 points in the last six months and by 1.6 points in the last 12 months.
Implementation
June 2016 is divided into five weeks, from the 30th of May to the 3rd of July. The total sample size was 1,517 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 1,481 persons. In total the number of usable answers was 865 which correspond to 70.8% response rate. All figures have been weighted by sex and age groups. The confidence limit of the results on activity rate is ±2 points, employment rate is ±2.2 points and unemployment rate is ±1 point. Figures may not add up because of rounding.
| Table 1. Labour market in June - Original | ||||||
| CI | CI | CI | ||||
| 2014 | (±95%) | 2015 | (±95%) | 2016 | (±95%) | |
| Total 16-74 years | ||||||
| Activity rate | 85.3 | 2,2 | 86.6 | 2 | 85.3 | 2 |
| Employment rate | 81.4 | 2,4 | 84.1 | 2,2 | 83.3 | 2,2 |
| Unemployment rate | 4.6 | 1,5 | 2.9 | 1,2 | 2.3 | 1 |
| Hours of work | 43.2 | 1,3 | 42.5 | 1,3 | 41.7 | 1,2 |
| Labour force | 195,300 | 5,000 | 202,200 | 4,700 | 201,800 | 4,800 |
| Employed | 186,300 | 5,600 | 196,400 | 5,200 | 197,100 | 5,100 |
| Unemployed | 9,000 | 2,900 | 5,800 | 2,300 | 4,700 | 2,100 |
| Inactive | 33,600 | 5,000 | 31,300 | 4,700 | 34,800 | 4,800 |
| Est. population | 228,800 | • | 233,500 | • | 236,600 | • |
| Table 2. Labour market last 6 months - Seasonal adjustment | ||||||
| Jan-16 | Feb-16 | Mar-16 | Apr-16 | May-16 | Jun-16 | |
| Total 16-74 years | ||||||
| Activity rate | 82.9 | 82.7 | 83.1 | 84.1 | 83.7 | 83.1 |
| Employment rate | 80.7 | 80.1 | 80.4 | 81.0 | 81.9 | 80.9 |
| Unemployment rate | 2.7 | 3.2 | 3.3 | 3.7 | 2.2 | 2.6 |
| Hours of work | 40.7 | 40.3 | 40.3 | 40.2 | 40.1 | 39.8 |
| Labour force | 194,200 | 193,600 | 194,000 | 198,100 | 196,500 | 193,800 |
| Employed | 189,000 | 187,400 | 187,600 | 190,800 | 192,300 | 188,700 |
| Unemployed | 5,200 | 6,200 | 6,400 | 7,300 | 4,300 | 5,100 |
| Inactive | 40,000 | 40,500 | 39,300 | 37,300 | 38,200 | 39,400 |
| Est. population | 234,200 | 234,100 | 233,300 | 235,400 | 234,700 | 233,200 |
| Table 3. Labour market last 6 months - Seasonal adjustment trend | ||||||
| Jan-16 | Feb-16 | Mar-16 | Apr-16 | May-16 | Jun-16 | |
| Total 16-74 years | ||||||
| Activity rate | 82.8 | 82.9 | 83.0 | 83.1 | 83.3 | 83.3 |
| Employment rate | 80.2 | 80.3 | 80.4 | 80.7 | 80.9 | 81.0 |
| Unemployment rate | 3.2 | 3.1 | 3.1 | 3.0 | 2.9 | 2.8 |
| Hours of work | 40.4 | 40.3 | 40.3 | 40.2 | 40.1 | 40.0 |
| Labour force | 193,900 | 194,400 | 194,900 | 195,400 | 195,700 | 195,900 |
| Employed | 187,700 | 188,300 | 188,900 | 189,500 | 190,100 | 190,400 |
| Unemployed | 6,200 | 6,100 | 6,000 | 5,800 | 5,600 | 5,500 |
| Inactive | 40,200 | 40,200 | 40,000 | 39,600 | 39,400 | 39,200 |
| Est. population | 234,100 | 234,600 | 234,900 | 235,000 | 235,100 | 235,100 |