Based on monthly unadjusted measures from the Icelandic Labour Force Survey the number of active individuals from the age of 16-74 on the labour market was estimated to be 195,000 (±6,300). That is equivalent to an activity rate of 75.8% (±2.4%). Of active individuals, it was estimated that around 181,200 (±4,600) were employed, and 13,700 (±2,800) unemployed and looking for a job.
The rate of employed indiviuals of the population was estimated to be 70.5% (±2.5) while the unadjusted unemployment rate was estimated to be 7.0% (±1.4%). Moreover, the number of unadjusted hours worked has never been lower, or 34.8 hours, since the start of the continuous Labour Force Survey in Iceland in 2003. The same is observed with the unadjusted activity rate and the unadjusted rate of employment, which have never been lower since 2003.
Taken together, the effect of Covid-19 on the Icelandic Labour Market in April is clearly observed in the unadjusted numbers. The unadjusted estimates indicated that the number of inactive people increased in April, along with unemployment rate, while hours worked decreased. Comparing the current unadjusted measure of unemployment to April 2019 shows that the unemployment rate has increased by 3 precentage points between years. The employment rate has decreased by 8.8 precentage points along with the activity rate decreasing by 6.8 precentage points.
The seasonally adjusted number of unemployed people in April was around 11,300, or 5.3% of the labour force. Seasonally adjusted activity rate was 75.4% while the seasonally adjusted employment rate was 70.2%. The seasonally adjusted activity rate has decreased by 5.1 precentage points over the last 6 months while the seasonally adjusted employment rate decreased by 7.2 precentage points.
The seasonally adjusted trend of the rate of unemployment for the last six months increased from 3.7% in November to 4.1% in April. Concurrently, the seasonally adjusted trend of employment rate decreased by 0.7 precentage points and the activity rate by 0.6 precentage points.
It is proper to note that the seasonally adjusted estimates may be somewhat inaccurate as a result of unprecedented circumstances in the Icelandic labour market in the spring of 2020. The seasonally adjusted estimates assume general seasonal changes in the Icelandic labour market, for example by assuming that typically the number of unemployed people increase during springtime due to students looking for summerjobs. It is evident that in the spring of 2020 such adjustments are insufficient because of the effect of unexpected and extraordinary events have had on people’s labour market status. Thus, it is important to focus on the unadjusted measures when estimating short term effects.
All numbers are weighted by age and gender and rounded to the nearest hundred.
| Table 1. Labour market in April — unadjusted measures | ||||||
| CI | CI | CI | ||||
| 2018 | (±95%) | 2019 | (±95%) | 2020 | (±95%) | |
| Total 16–74 years | ||||||
| Activity rate | 82.1 | 2.5 | 82.6 | 2.4 | 75.8 | 2.4 |
| Employment rate | 78.3 | 2.7 | 79.3 | 2.6 | 70.5 | 2.5 |
| Unemployment rat | 4.6 | 1.3 | 4.0 | 1.1 | 7.0 | 1.4 |
| Hours of work | 39.7 | 1.2 | 37.4 | 1.3 | 34.8 | 1.1 |
| Labour force | 202,100 | 6,200 | 212,100 | 6,200 | 195,000 | 6,300 |
| Employed | 192,700 | 5,200 | 203,500 | 5,400 | 181,200 | 4,600 |
| Unemployed | 9,400 | 2,700 | 8,600 | 2,400 | 13,700 | 2,800 |
| Inactive | 44,100 | 5,900 | 44,700 | 6,200 | 62,200 | 6,200 |
| Est. population | 246,200 | • | 256,700 | • | 257,200 | • |
| Table 2. Labour market last 6 months — seasonal adjustment | ||||||
| Nov-19 | Dec-19 | Jan-20 | Feb-20 | Mar-20 | Apr-20 | |
| Total 16–74 years | ||||||
| Activity rate | 80.5 | 80.7 | 81.0 | 80.4 | 79.0 | 75.4 |
| Employment rate | 77.4 | 77.6 | 78.0 | 77.5 | 76.9 | 70.2 |
| Unemployment rate | 4.1 | 3.9 | 3.4 | 5.0 | 3.3 | 5.3 |
| Hours of work | 40.3 | 39.9 | 39.6 | 39.4 | 38.4 | 37.3 |
| Labour force | 205,800 | 209,100 | 208,700 | 208,500 | 208,300 | 195,400 |
| Employed | 198,200 | 202,200 | 202,700 | 199,600 | 202,200 | 183,200 |
| Unemployed | 7,100 | 7,300 | 7,000 | 10,300 | 5,900 | 11,300 |
| Inactive | 52,600 | 49,700 | 50,400 | 51,000 | 53,300 | 61,700 |
| Est. population | 258,400 | 258,900 | 259,100 | 259,600 | 261,800 | 258,500 |
| Table 3. Labour market last 6 months — seasonal adjustment trend | ||||||
| Nov-19 | Dec-19 | Jan-20 | Feb-20 | Mar-20 | Apr-20 | |
| Total 16–74 years | ||||||
| Activity rate | 80.7 | 80.7 | 80.9 | 81.1 | 81.1 | 80.1 |
| Employment rate | 77.7 | 77.6 | 77.9 | 77.6 | 77.6 | 77.0 |
| Unemployment rate | 3.7 | 3.8 | 3.7 | 4.0 | 4.0 | 4.1 |
| Hours of work | 40.2 | 40.1 | 40.0 | 39.8 | 39.8 | 37.5 |
| Labour force | 208,600 | 208,900 | 209,400 | 209,300 | 209,300 | 206,900 |
| Employed | 201,100 | 201,200 | 202,600 | 201,000 | 201,000 | 198,500 |
| Unemployed | 7,300 | 7,200 | 7,300 | 8,100 | 8,100 | 8,500 |
| Inactive | 49,700 | 49,800 | 49,700 | 50,300 | 50,300 | 56,400 |
| Est. population | 258,400 | 258,900 | 259,200 | 259,600 | 259,600 | 260,600 |
About the data
The Labour Force Survey for April 2020 covers 5 weeks, from March 30th 2020 through May 3rd 2020. The sample consisted of 1,896 individuals aged 16-74 years domiciled in Iceland. When those who were domiciled abroad or deceased had been excluded the net sample included 1,852 individuals. A total of usable answers were obtained from 1,215 individuals, which corresponds to 65.6% response rate.