According to seasonally adjusted figures from the Icelandic Labour Force Survey, the unemployment rate was 4.5% in February 2022. The seasonally adjusted activity rate was 82.1% and the employment rate 78.4%. The seasonally adjusted unemployment rate increased by 1.2 percentage points between months and the employment rate increased by 0.9 percentage points. Seasonally adjusted unemployment has been trending downwards in the past six months and decreased by 0.4 percentage points, while the trend of employment rate increased by 1.9 percentage points.
Based on unadjusted measures, without seasonal adjustments, 215,400 (± 6,700) of 16-74 year-olds were active in the labour market in February 2022, which is equivalent to 80.4% (± 2.5) activity rate. Of the labour force, 206,200 (± 6,400) were employed and 9,200 (± 3,100) unemployed and looking for a job. The employment rate was estimated to be 77.0% (± 3.1) and the unemployment rate 4.3% (± 1.4).
Compared with February 2021 the unemployment rate has decreased by 1.8 percentage points between years, the employment rate increased by 5.3 percentage points and the activity rate increased by 4.0 percentage points. Employed persons worked 34.4 (± 1.3) hours on average per week in February 2022 which is 1.5 hours less than in February 2021. Probable explanation for the decrease in working hours between years could be high absence from work in February 2022. The proportion of working individuals at work in the reference week in February 2022 was 85% compared with 95% in February 2021.
It is estimated that 29,700 individuals had unmet need for employment (labour market slack) in February 2022, which corresponds to 13.1% of the labour force and potential labour force. Of those, 31.3% were unemployed, 22.1% willing to work but not looking, 13.6% in search of a job but not ready to work and 33.0% underemployed part-time workers (working part-time and wanting to work more). Compared with February 2021, the labour market slack decreased slightly, or by 0.7 percentage points between years. The seasonally adjusted trend of the labour market slack has decreased by 1.2 percentage points over the last six months.
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 February 2022 covers four weeks, from 31 January through 27 February 2022. The sample consisted of 1,543 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 1,510 individuals. Usable answers were obtained fom 947 individuals which corresponds to a 62.7% response rate.