The unemployment rate in December 2022 was 3.3% according to seasonally adjusted figures from the Icelandic Labour Force Survey. The seasonally adjusted activity rate was 79.8% and the employment rate 77.2%. The seasonally adjusted unemployment rate decreased by 1.6 percentage points between months and the seasonally adjusted employment rate decreased by 0.4 percentage points. The trend of the seasonally adjusted unemployment rate was stable at 3.8% over the last six months while the trend of the employment rate increased by 0.5 percentage points.
Based on seasonally unadjusted figures from the Labour Force Survey, 216,300 (±7,500) individuals 16-74 years old were active on the Icelandic labour market in December 2022, which is equivalent to an 78.1% (±2.7) activity rate. Of the labour force, 209,700 (±6,000) were employed and 6,600 (±2,600) unemployed and looking for a job. The employment rate was estimated to be 75.7% (±2.9) and the unemployment rate 3.1% (±1.2). Compared with December 2021, the unemployment rate decreased by 1.3 percentage points between years and the employment rate increased by 1.1 percentage points.
Around 17,400 individuals had unmet need for employment (I.e. labour market slack) in December 2022 which corresponds to 7.8% of the labour force and potential labour force. Of those, 38.1% were unemployed, 26.4% ready to work but not looking, 4.5% searching for a job but not ready to work and 31.0% underemployed (working part-time and wanting to work more). The labour market slack has decreased by 4.6 percentage points between years compared with December 2021. The trend of labour market slack has decreased slightly over the past six months or by 1.1 percentage points.
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 December 2022 covers five weeks period, from November 28 until January 1. The sample consisted of 1,944 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 1,902 individuals. Usable answers were obtained from 1,046 individuals which corresponds to a 55.0% response rate.
Plese note that from now on the monthly news releases are discontinued and figures will only be updated in the PX-tables. Coverage of monthly changes in the labour market will now be a part of quarterly news releases.