Iceland Mag

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Iceland Mag

Economy

Unemployment during Q2 of 2018 was 3.6%, up by 0.2% over 2017

By Staff

  • A growing economy Tourism has been a major driver of economic growth and job creation in recent years. Photo/Fréttablaðið

  • Unemployment 2010-2018 The economy has been operating at full capacity since 2016. The GDP of Iceland grew by 7.4% in 2016. Photo/Statistics Iceland

The latest unmeployment figures from Statistics Iceland confirm that the Icelandic economy continues to run at full steam, although there is slightly more slack in the labor market. A slight uptick in unemployment and a small drop in the labor participation rate should make ti easier for employers to fill open positions. Record high labor participation rate and low unemployment in recent years have made it increasingly difficult to find people to fill new jobs.

Read more: Peak puffin: 2.5% in visitor numbers in July due to continued increase from US

Statistics Iceland reports that unemployment was 3.6%, with an labor participation rate of 83.0%. Unemployment is up slightly over the second quarter of 2017, when it was 3.4%. The 0.2% increase corresponds to an increase of 300 people who have been without a job for more than two weeks. Meanwhile labor participation rate has dropped slightly from 81.5% to 80.0%.

The unemployment rate in July was 3.1%, as a total of 6,400 persons were unemployed. 

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