Biggest Drop in Unemployment in Two Decades Skip to content

Biggest Drop in Unemployment in Two Decades

By Yelena

Tourists iceland Fjallsárlón glacier lagoon
Photo: Golli. Tourists at Fjallsárlón glacier lagoon.

Unemployment in Iceland dropped from 10.4% to 9.1% between April and May of this year, the largest month-to-month decrease in the country since 1994. The number of people on the unemployment register has decreased by around 2,400 during the same period. The biggest decrease in unemployment was measured in tourism-related sectors, where unemployment decreased between 18 and 20 per cent. Vísir reported first.

While tourism showed the most change, unemployment decreased across all sectors between April and May, faster than projected. Minister of Social Affairs Ásmundur Einar Daðason expressed his satisfaction with the development, pointing to the government’s employment initiative “Hefjum störf!” that aimed to create at least 7,000 jobs through financial support to both private and public institutions that hired new employees. Around 10,400 jobs are now available through the initiative.

Ásmundur Einar added that the goal is to create even more jobs in the coming months in partnership with the business community. According to the Directorate of Labour’s projections, unemployment is expected to fall to 7.3-7.7% in June, which would mean the number of people on the unemployment register would drop from 20,000 in April to 14,000 by the end of this month.

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