Does Iceland have many foreign residents? What are the wages and working conditions like for foreign workers? Skip to content
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Q

Does Iceland have many foreign residents? What are the wages and working conditions like for foreign workers?

A

Yes, Iceland has a significant number of foreign residents. The latest figures from Statistics Iceland show that immigrants comprise around 18% of the total population of Iceland.

The Icelandic economy has grown quickly in the years following the 2008 banking collapse, largely driven by the tourism industry. However, given Iceland’s small population pool, the recent economic expansion is largely dependent on foreign labour.

Of Icelanders with a foreign background, Poles make up by far the largest group. As of 2022, some 20,896 were living in Iceland, or 34.2% of the total immigrant population. The second- and third-largest groups are comprised of people from Lithuania and Romania respectively.

Employment opportunities mean that Iceland's immigrant population is largely clustered around the capital region, though residents with a foreign background also make up a notable part of the Westfjords. One of the least-populated regions of Iceland, tour-related services have become a large part of this region's economy.


Though Iceland is an attractive destination for many, there are also realities to immigration.

For example, a 2018 study by the University of Akureyri found while the average monthly salary in that year for full-time workers was 721,000 ISK [$5,168; €4,727], 60% of immigrants made only 400,000 ISK [$2,866; €2,623] or less per month.

Besides statistics, there is of course also a subjective element to the immigrant experience. Iceland is a small community with a unique language. For some, this is a major attraction to life in Iceland, but for others, it can be alienating. Some may also find themselves working largely English-based jobs in the tourism and service sector, and never truly integrating to Icelandic society.

Unfortunately, there have also been increasing incidents of wage theft, in which employers withhold earnings from workers who may not be in a position to press their rights. Read about the rights of workers here, in English.

This is of course a large issue with many facets. Read our coverage of social issues, and check out our coverage of Iceland's largest immigrant population below.

Prospective immigrants to Iceland may also find this Ask Iceland Review helpful: How can I move to Iceland?

 

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