Iceland devotes a larger share of its economy to public education than the OECD average. However, the system continues to face teacher shortages and uneven educational attainment, according to the latest Education at a Glance report.
Public spending on education amounts to 5.2% of gross domestic product, compared with an OECD average of 4.0%. Spending per student is also above the OECD average when adjusted for purchasing power.
High Education Spending Vs. Teacher Shortages
- Iceland spends 5.2% of GDP on public education, compared with an OECD average of 4.0%.
- Nineteen per cent of people aged 25–34 have not completed education beyond compulsory school, against 12% across the OECD.
- Teacher shortages are most acute in mathematics, science and rural schools, according to the comparison.
Participation is High, but Qualifications Remain Uneven
Forty-four per cent of adults in Iceland have completed tertiary education, close to the OECD average of 43%. Among people aged 25–34, however, 19% have not completed education beyond compulsory school, compared with an OECD average of 12%. The Icelandic figure has improved from 27% in 2015.
The share of young people neither in employment, education nor training is 5%, well below the OECD average of 13%. Preschool participation is also high: 96% of children of the relevant age attend, compared with 90% across the OECD.
The report adds context to recent concerns about Iceland’s weak PISA results and declining reading skills among children. Municipal officials have also warned that the education system is under growing pressure, while language and literacy policy has faced criticism from educators and researchers.
The number of full-time-equivalent teachers in primary and lower-secondary schools grew by 16% from 2015 to 2024, while student numbers increased by 6%. Even so, shortages persist, particularly in mathematics and science and outside the capital region.
Source: Government of Iceland, citing OECD Education at a Glance 2026
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