Based on unadjusted monthly measures from the Icelandic Labour Force Survey, the number of 16-74 year olds active in the labour market was estimated to be 208,500 (±6,100) in August 2020, which is equivalent to an activity rate of 81.1% (±2.4). Of active individuals, the number of employed persons was estimated to be 195,900 (±5,600) and 12,400 (±2,900) unemployed and looking for a job. The rate of employed individuals of the population was estimated to be 76.2% (±2.8) and the unadjusted unemployment rate 6.0% (±1.4).
When the measures from August 2020 are compared with August measures from the last two years, a comparison to August 2019 shows that the activity rate has increased by 1.9 percentage points between years while the unemployment rate has increased by 1.6 percentage points. The average hours worked in August 2020 were 39.5 hours which is a 2 hour decrease from August 2019. The inactive rate was 18.9% in August 2020 which is 1.8 percentage points lower than in August 2019. Compared with August 2018 the employment rate has decreased by 4.1 percentage points and the unemployment rate increased by 3.5 percentage points along with a decrease in the average hours worked from 41.9 hours in August 2018 to 39.5 hours in August 2020. The inactive rate is 1.2 percentage points higher than in August 2018.
The seasonally adjusted numbers in August 2020 show the number of unemployed to be 12,400 which is equivalent to 6.0% of the labour force. Seasonally adjusted activity rate was 80.8% and the employment rate 76.3%. The seasonally adjusted activity rate increased by 0.9 percentage points and the employment rate increased by 0.6 percentage points compared to July 2020. The seasonally adjusted unemployment rate decreased by 0.4 percentage points between months and seasonally adjusted average hours worked decreased by 0.6 hours.
Over the last 6 months the trend of seasonal adjustment on the employment rate has increased from 77.0% in March 2020 to 77.7% in August. The seasonally adjusted trend of unemployment rate increased by 1.6 percentage points, from 3.6% in March to 5.2% in August, along with a 1.4 hour decrease in hours worked.
All numbers are weighted by age and gender and rounded to the nearest hundred.
Flowchart. Labour market 16–74 years old – Unadjusted measures August 2020
| Table 1. Labour market in August — unadjusted measures | ||||||
| CI | CI | CI | ||||
| 2018 | (±95%) | 2019 | (±95%) | 2020 | (±95%) | |
| Total 16–74 years | ||||||
| Activity rate | 82.3 | 2.2 | 79.2 | 2.5 | 81.1 | 2.4 |
| Employment rate | 80.3 | 2.4 | 75.7 | 2.4 | 76.2 | 2.8 |
| Unemployment rate | 2.5 | 0.9 | 4.4 | 1.1 | 6.0 | 1.4 |
| Hours of work | 41.9 | 1.1 | 41.5 | 1.5 | 39.5 | 1.1 |
| Labour force | 206,700 | 5,300 | 204,900 | 6,300 | 208,500 | 6,100 |
| Employed | 201,600 | 4,700 | 195,900 | 4,700 | 195,900 | 5,600 |
| Unemployed | 5,100 | 1,800 | 9,000 | 2,300 | 12,400 | 2,900 |
| Inactive | 44,400 | 4,900 | 53,600 | 5,500 | 48,600 | 5,900 |
| Est. population | 251,000 | • | 258,600 | • | 256,900 | • |
| Table 2. Labour market last 6 months — seasonal adjustment | ||||||
| Mar-20 | Apr-20 | May-20 | Jun-20 | Jul-20 | Aug-20 | |
| Total 16–74 years | ||||||
| Activity rate | 79.0 | 75.4 | 79.5 | 80.1 | 79.9 | 80.8 |
| Employment rate | 76.9 | 70.2 | 72.8 | 75.5 | 75.7 | 76.3 |
| Unemployment rate | 3.3 | 5.3 | 5.9 | 4.1 | 6.4 | 6.0 |
| Hours of work | 38.4 | 37.3 | 36.7 | 36.9 | 38.7 | 38.1 |
| Labour force | 208,300 | 195,400 | 203,700 | 209,400 | 208,400 | 208,900 |
| Employed | 202,200 | 183,200 | 190,500 | 197,900 | 194,800 | 196,000 |
| Unemployed | 5,900 | 11,300 | 14,300 | 8,300 | 12,600 | 12,400 |
| Inactive | 53,300 | 61,700 | 55,400 | 53,700 | 50,900 | 50,100 |
| Est. population | 261,800 | 258,500 | 259,500 | 262,100 | 260,100 | 258,700 |
| Table 3. Labour market last 6 months — seasonal adjustment trend | ||||||
| Mar-20 | Apr-20 | May-20 | Jun-20 | Jul-20 | Aug-20 | |
| Total 16–74 years | ||||||
| Activity rate | 80.1 | 80.1 | 79.9 | 79.9 | 79.8 | 80.3 |
| Employment rate | 77.0 | 77.0 | 77.2 | 78.2 | 77.8 | 77.7 |
| Unemployment rate | 3.6 | 4.1 | 4.5 | 4.5 | 4.8 | 5.2 |
| Hours of work | 39.5 | 37.5 | 37.3 | 36.8 | 37.9 | 38.1 |
| Labour force | 209,000 | 206,900 | 207,100 | 208,400 | 208,300 | 209,100 |
| Employed | 202,000 | 198,500 | 196,300 | 199,300 | 199,800 | 198,600 |
| Unemployed | 7,500 | 8,500 | 9,200 | 9,000 | 9,500 | 10,300 |
| Inactive | 52,200 | 56,400 | 56,700 | 55,000 | 52,400 | 50,600 |
| Est. population | 261,800 | 260,600 | 259,900 | 262,000 | 260,900 | 259,800 |
About the data
In Statistics Iceland’s Labour force survey, unemployed persons are those who were unemployed in the reference week of the study, i.e., had neither employment nor had been employed (for one hour or more) as an employee or self-employed, are looking for work and can start work within two weeks or have received a job that begins within 3 months. Individuals who are not in work but are studying are classified as unemployed if they meet the above criteria.
The Labour Force Survey for August 2020 covers 4 weeks, from August 3rd through August 31st. The sample consisted of 1,539 individuals 16-74 years old, domiciled in Iceland. When those who were domiciled abroad or deceased had been excluded the net sample consisted of 1,495 individuals. Usable answers were obtained from 963 individuals which corresponds to 64.4% response rate.