Directorate of Labor Predicts Growing Unemployment Skip to content

Directorate of Labor Predicts Growing Unemployment

Iceland’s Directorate of Labor is expecting unemployment in Iceland to increase considerably next fall after the end of summer holidays. The most extensive increase in unemployment in three decades is predicted, from one to three percent.

The most pessimistic predictions say unemployment will reach 3.8 percent next year which means that around 6,700 people will be out of a job, Morgunbladid reports.

Immigrant workers are expected leave Iceland as a result of the decreased demand for laborers. However, contrary to expectations, the demand for foreign labor was still high this summer.

Gissur Pétursson, head of the Directorate of Labor, said the good employment situation in Iceland had lasted longer than they had expected but the outlook for next fall is bleak.

Fortunately the unemployment benefit fund is capable of handling an unemployment rate of at least a 2.3 percent, Pétursson said.

Sign up for our weekly newsletter

Get news from Iceland, photos, and in-depth stories delivered to your inbox every week!

* indicates required

Subscribe to Iceland Review

In-depth stories and high-quality photography showcasing life in Iceland!

Share article