The unemployment rate in July 2021 was 5.2% according to seasonally adjusted figures from the Icelandic Labour Force Survey. Seasonally adjusted activity rate was 78.7% and seasonally adjusted employment rate 74.8%. Comparison with June 2021 shows that the seasonally adjusted unemployment rate decreased by 0.4 percentage points between months which corresponds to a decrease of 900 individuals. The employment rate increased by 0.5 percentage points between months which corresponds to an increase of 1,500 individuals.
The seasonally adjusted unemployment rate has decreased by 2.5 percentage points between years, from 7.7% in July 2020. At the same time, the seasonally adjusted employment rate increased by 1.9 percentage points between years. The trend of the unemployment rate has decreased by 0.5 percentage points in the past 6 months and the trend of the employment rate increased by 2.1 percentage points.
Based on unadjusted measures, the number of 16-74 year olds active on the labour market was estimated to be 215,400 (±7,000) in July 2021, which is equivalent to 81.5% (±2.6) activity rate. Of the labour force, 206,600 (±5,700) were employed and 8,800 (±2,900) unemployed and looking for a job. The employement rate was estimated to be 78.2% (±2.8) and the unemployment rate 4.1% (±1.3). Employed persons worked 38.6 (±1.6) hours on average in July 2021. Comparison with July 2020 shows that unemployment decreased by 2.2 percentage points between years and employment increased by 3.1 percentage points.
The number of individuals with unmet need for employment (labour market slack) was estimated to be 21,900 in July 2021 which is equivalent to 9.9% of the labour force and potential labour force. Of those individuals 40.3% were unemployed, 21.7% ready to work but not looking for a job, 9.2% looking for a job but not ready to work and 28.8% underemployed (working part time job wanting to work more). Comparison with July 2020 shows that labour market slack has decreased by 2.1 percentage points between years. The trend of the labour market slack has decreased by 0.6 percentage points in the past three months and by 1.1 percentage points in the past 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 July 2021 covers four weeks, from 5 July through 1 August 2021. The sample consisted of 1,534 individuals, 16-74 years old and domiciled in Iceland. When those who were domiciled abroad or deceased had been excluded, the net sample consisted of 1,514 individuals. Usable answers were obtained from 962 individuals which corresponds to a 63.5% response rate.