Iceland’s seasonally adjusted unemployment rate rose to 7.1% in February 2026, the highest level in three months, from a downwardly revised 6.8% in January. The number of unemployed persons increased by 0.9 thousand month-on-month to 17.0 thousand, of which 9.4 thousand were men and 7.6 thousand were women. The youth unemployment rate, which measures job-seekers between 16 to 24 years old, went up to 17.0% from 16.6%, reaching its highest level since April 2021. Meanwhile, the employment rate dropped to an over four-and-a-half-year low of 75.0% from 75.8% in January, with the number of employed individuals falling by 0.6 thousand to 221.1 thousand. The labor force participation rate fell to 80.8% from 81.4%. On a non-seasonally adjusted basis, the unemployment rate inched up to 7.9% in February from 7.5% in the previous month, marking the highest level since May 2021. source: Statistics Iceland

Unemployment Rate in Iceland increased to 7.10 percent in February from 6.80 percent in January of 2026. Unemployment Rate in Iceland averaged 2.85 percent from 1970 until 2026, reaching an all time high of 10.10 percent in June of 2009 and a record low of 0.10 percent in August of 1972. This page provides the latest reported value for - Iceland Unemployment Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Iceland Unemployment Rate - data, historical chart, forecasts and calendar of releases - was last updated on March of 2026.

Unemployment Rate in Iceland increased to 7.10 percent in February from 6.80 percent in January of 2026. Unemployment Rate in Iceland is expected to be 5.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Iceland Unemployment Rate is projected to trend around 4.30 percent in 2027 and 4.00 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-02-25 09:00 AM
Unemployment Rate
Jan 7.3% 4.5% 4.5%
2026-03-26 09:00 AM
Unemployment Rate
Feb 7.1% 6.8% 7.0%
2026-04-29 09:00 AM
Unemployment Rate
Mar 7.1% 5.20%


Related Last Previous Unit Reference
Employed Persons 221100.00 221700.00 Feb 2026
Employment Rate 75.00 75.80 percent Feb 2026
Job Vacancies 285.00 168.00 Feb 2026
Job Vacancy Rate 2.00 2.00 percent Sep 2025
Labor Force Participation Rate 80.80 81.40 percent Feb 2026
Unemployed Persons 17000.00 16100.00 Feb 2026
Unemployment Rate 7.10 6.80 percent Feb 2026
Real Wage Growth 1.90 2.50 percent Feb 2026
Wages 909000.00 867000.00 ISK/Month Dec 2024
Youth Unemployment Rate 17.00 16.60 percent Feb 2026


Iceland Unemployment Rate
In Iceland, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.
Actual Previous Highest Lowest Dates Unit Frequency
7.10 6.80 10.10 0.10 1970 - 2026 percent Monthly
SA

News Stream
Iceland Jobless Rate Rises to 7.1% in February
Iceland’s seasonally adjusted unemployment rate rose to 7.1% in February 2026, the highest level in three months, from a downwardly revised 6.8% in January. The number of unemployed persons increased by 0.9 thousand month-on-month to 17.0 thousand, of which 9.4 thousand were men and 7.6 thousand were women. The youth unemployment rate, which measures job-seekers between 16 to 24 years old, went up to 17.0% from 16.6%, reaching its highest level since April 2021. Meanwhile, the employment rate dropped to an over four-and-a-half-year low of 75.0% from 75.8% in January, with the number of employed individuals falling by 0.6 thousand to 221.1 thousand. The labor force participation rate fell to 80.8% from 81.4%. On a non-seasonally adjusted basis, the unemployment rate inched up to 7.9% in February from 7.5% in the previous month, marking the highest level since May 2021.
2026-03-26
Iceland Jobless Rate Highest in Over 4 Years
Iceland’s seasonally adjusted unemployment rate rose by 7.3% in January 2026, following 4.5% in the previous month, marking the highest level since April 2021. The number of unemployed persons increased by 6,900 from a month ago to 17,400. By gender, the unemployment rate for men jumped 7.1% from 4.5%, while the rate for women surged to 7.4% from 4.6%. The youth unemployment rate, which measures job-seekers between 16 to 24 years old, grew sharply to 16.6% from 11.2% in December 2025. Meanwhile, the employment rate dropped to 75.7% from 76.8%, with the number of employed persons decreased by 400 to 222,500. The labor force participation rate rose 81.6%, compared with 80.5% in the prior month. On a non-seasonally adjusted basis, the unemployment rate climbed to 8.3% in January from 4.2% in December 2025.
2026-02-25
Iceland Unemployment Rate Falls to 4.5% in December
Iceland’s seasonally adjusted unemployment rate fell sharply to 4.5% in December 2025, down from 6.9% in November. While unemployment typically declines in December due to seasonal factors, the rate remained above the 3.9% recorded in the same month a year earlier. The number of unemployed persons declined by 5,900 over the month, bringing the total to 10,500. Unemployment decreased across both genders. The rate for men dropped to 4.5% from 6.1%, while female unemployment declined sharply to 4.4% from 7.7%. The youth unemployment rate, which tracks job-seekers aged 14 to 26, also improved, falling to 10.8% from 13.5% in the previous month. The employment rate increased to 76.9% from 75.6%, corresponding to an increase of 1,600, with 223,400 employed individuals. Meanwhile, the labor force participation rate fell to 80.5% from 81.2%. On a non-seasonally adjusted basis, the unemployment rate also showed strong improvement, decreasing to 4.2% in December from 6.5% in November.
2026-01-21