According to the Icelandic Labour Force Survey the number of persons in the labour force in May 2016 was 203,600. Of those in the labour force 195,400 persons were employed and 8,200 persons were unemployed. The activity rate was 86.1%, the employment rate was 82.7% and the unemployment rate was 4.1%. Comparison between May 2015 and 2016 shows an increase in activity, or two percentage points of the total population. Number of employed increased by 12,500 persons and the rate went up by 4.2 points. Number of unemployed decreased by 5.000 persons and the unemployment rate went down by 2.7 points. Unemployment has not been this low, in the month of May, since the year 2005 when it also was measured at 4.1%.
Figure 1. Labour force May 2016
Figures may not add up because of rounding.
Seasonally adjusted unemployment was 2.2% in May
The changes in the Icelandic labour market display a certain pattern as regards seasonality, as can be seen in the figures below. Thus unemployment according to the Icelandic labour force survey has always increased between April and May due to increased demand for summer and/or future jobs by youth (16-24 years). This year unemployment evolved differently between April and May than in previous years, as the overall unemployment decreased. That has some impact on seasonally adjusted unemployment figures.
According to the seasonal adjustment the estimated unemployment rate in May 2016 was 2.2% compared to 4% in April. The trend line for the last six months shows that the unemployment has decreased by 0.3 percentage points and for the last 12 months it has decreased by 0.8 points.
Implementation
May 2016 is divided into four weeks, from the 2nd to the 29th of May. The total sample size was 1,217 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 1,173 persons. In total the number of usable answers was 865 which correspond to 73.7% response rate. All figures have been weighted by sex and age groups. The confidence limit of the results on activity rate is ±2.2 points, employment rate is ±2.5 points and unemployment rate is ±1.5 points. Figures may not add up because of rounding.
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 May - Original | ||||||
| CI | CI | CI | ||||
| 2014 | (±95%) | 2015 | (±95%) | 2016 | (±95%) | |
| Total 16-74 years | ||||||
| Activity rate | 84.9 | 1.9 | 84.2 | 2.3 | 86.1 | 2.2 |
| Employment rate | 78.8 | 2.3 | 78.5 | 2.6 | 82.7 | 2.5 |
| Unemployment rate | 7.2 | 1.6 | 6.8 | 1.8 | 4.1 | 1.5 |
| Hours of work | 40.6 | 1.1 | 41.1 | 1.3 | 41.2 | 1.3 |
| Labour force | 193,900 | 4,400 | 196,200 | 5,300 | 203,600 | 5,200 |
| Employed | 180,000 | 5,200 | 182,900 | 6,100 | 195,400 | 5,800 |
| Unemployed | 13,900 | 3,100 | 13,200 | 3,500 | 8,200 | 3,000 |
| Inactive | 34,400 | 4,400 | 36,900 | 5,300 | 32,800 | 5,200 |
| Est. population | 228,300 | • | 233,000 | • | 236,400 | • |
| Table 2. Labour market last 6 months - Seasonal adjustment | ||||||
| Dec-15 | Jan-16 | Feb-16 | Mar-16 | Apr-16 | May-16 | |
| Total 16-74 years | ||||||
| Activity rate | 82.4 | 83.0 | 82.7 | 83.3 | 84.4 | 83.9 |
| Employment rate | 80.6 | 80.6 | 80.0 | 80.3 | 81.0 | 82.1 |
| Unemployment rate | 2.2 | 2.9 | 3.3 | 3.6 | 4.0 | 2.2 |
| Hours of work | 40.4 | 40.7 | 40.3 | 40.3 | 40.3 | 40.2 |
| Labour force | 191,000 | 194,700 | 193,900 | 194,900 | 200,000 | 197,500 |
| Employed | 186,800 | 189,100 | 187,500 | 187,900 | 192,100 | 193,200 |
| Unemployed | 4,200 | 5,600 | 6,300 | 7,000 | 7,900 | 4,400 |
| Inactive | 40,700 | 40,000 | 40,400 | 39,200 | 37,000 | 37,900 |
| Est. population | 231,700 | 234,700 | 234,300 | 234,100 | 237,000 | 235,400 |
| Table 3. Labour market last 6 months - Seasonal adjustment trend | ||||||
| Dec-15 | Jan-16 | Feb-16 | Mar-16 | Apr-16 | May-16 | |
| Total 16-74 years | ||||||
| Activity rate | 82.9 | 82.9 | 83.0 | 83.1 | 83.3 | 83.5 |
| Employment rate | 80.1 | 80.2 | 80.2 | 80.4 | 80.6 | 80.9 |
| Unemployment rate | 3.4 | 3.3 | 3.3 | 3.3 | 3.2 | 3.1 |
| Hours of work | 40.4 | 40.4 | 40.4 | 40.3 | 40.3 | 40.3 |
| Labour force | 193,400 | 194,400 | 195,200 | 196,100 | 196,800 | 197,400 |
| Employed | 186,900 | 188,000 | 188,800 | 189,600 | 190,500 | 191,200 |
| Unemployed | 6,500 | 6,400 | 6,400 | 6,400 | 6,400 | 6,200 |
| Inactive | 39,900 | 40,100 | 40,100 | 39,800 | 39,300 | 39,000 |
| Est. population | 233,300 | 234,500 | 235,300 | 235,900 | 236,200 | 236,400 |