Unemployment rate was 5.6% in June 2021 according to seasonally adjusted figures from the Icelandic Labour Force Survey. The seasonally adjusted activity rate was 79.2% and seasonally adjusted employment rate 74.5%. Comparison with May 2021 shows that the seasonally adjusted activity rate, employment rate and unemployment rate was relatively consistent between months. Seasonally adjusted activity rate and employment rate increased by 0.7 percentage points and the unemployment rate decreased by 0.1 percentage point between months. The trend of the employment rate increased by 0.9 percentage points over the last 6 months and the trend of the unemployment rate decreased by 0.3 percentage points.
Based on unadjusted measures, the number of 16-74 year olds active on the labour market was estimated to be 216,900 (± 5,900) in June 2021, which is equivalent to 82.3% (± 2.2) activity rate. Of the labour force, 206,700 (± 5,300) were employed and 10,200 (±3,000) unemployed and looking for a job. The employment rate was estimated to be 78.4% (± 2.6) and the unemployment rate 4.7% (± 1.4). Employed individuals worked 36.3 (± 1.0) hours on average in June 2021. Comparison with June 2020 shows that unemployment increased by 0.4 percentage points between years and the employment rate increased by 0.6 percentage points.
The number of individuals with unmet demand for employment (labour market slack) was estimated to be 21,600 in June 2021 which is equivalent to 9.8% of the labour force and potential labour force. Of those individuals 47.5% were unemployed, 14.0% ready to work but not looking for a job, 7.6% looking but not ready to work and 30.8% underemployed (working part time job wanting to work more). Labour market slack was similar in June 2021 and in June last year when it was 10.0%.
The sum of sub-items might be inconsistent with the overall results due to rounding.
About the data
The Labour Force Survey for June 2021 covers five weeks, from 31 May through 4 July 2021. The sample consisted of 1,898 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 1,867 individuals. Usable answers were obtained from 1,182 individuals which corresponds to a 63.3% response rate.