The unemployment rate in August 2022 was 4.5% according to seasonally adjusted figures from the Icelandic Labour Force Survey. The seasonally adjusted activity rate was 79.5% and the employment rate 76.0%. Seasonally adjusted unemployment rate increased by 0.4 percentage points between months and the employment rate by 0.3 percentage points. The trend of the seasonally adjusted unemployment rate has increased by 0.2 percentage points over the past six months while the trend of the employment rate has decreased by 0.7 percentage points.
Based on unadjusted measures from the Labour Force Survey, 218,900 (±7,600) individuals 16-74 years old were active on the labour market in August 2022, which is equivalent to an 80.2% (±2.8) activity rate. Of the labour force, 210,400 (±6,600) were employed and 8,500 (±3,400) unemployed and looking for a job. The employment rate was estimated to be 77.0% (±3.1) and the unemployment rate 3.9% (±1.6). Compared with August 2021 unemployment decreased by 1.3 percentage points between years while the employment rate increased by 1.2 percentage points.
Around 19,700 individuals had an unmet need for employment (I.e. labour market slack) in August 2022 which corresponds to 8.8% of the labour force and potential labour force. Labour market slack has decreased by 3.4 percentage points between years, when compared with August 2021. The seasonally adjusted trend of labour market slack has increased by 0.2 percentage points over the past six months. Of those who had an unmet need for employment in August 2022, 14.1% were available for work but not looking and 11.7% were looking for work but unavailable for work. In this group 43.0% were unemployed and 31.2% were considered underemployed.
Please note that the sum of sub-items might be inconsistent with the overall results due to rounding.
About the data
The Icelandic Labour Force Survey for August 2022 covers four weeks, from July 31 until August 28. The sample consisted of 1,536 individuals 16-74 years old with legal residence in Iceland. Excluding those from the sample who were living abroad or deceased, the net sample consisted of 1,507 individuals. Usable answers were obtained from 870 individuals which corresponds to a 57.7% response rate.