SA: Iceland’s Labor Market Is Growing Older Skip to content

SA: Iceland’s Labor Market Is Growing Older

By Iceland Review

The average age of workers on Iceland’s labor market will rise steadily in the next decades and immigrants will increase; assistant manager of the Confederation of Icelandic Employers (SA) Hannes G. Sigurdsson predicted.

Sigurdsson said the age combination of the nation is changing, pensioners will increase while wage earners decrease, which will affect almost every aspect of Iceland’s economy and call for a new way of thinking and new solutions from the government, Morgunbladid reports.

In 2050 more than one quarter of the nation will be 65 and older, Sigurdsson predicted, while currently one out of every ten Icelandic citizens is in that age group. Citizens ages 80 and older will increase from 9,600 to 45,000.

That means that if the retirement age remains the same as today (67), there will be two workers for every pensioner in 2050. Today, there are six workers for every pensioner.

Considering that situation, Sigurdsson said he did not believe Iceland will ever be able to provide its senior citizens with free welfare.

Sigurdsson added that Iceland has a good contributory pension scheme, but if life expectancy will increase by 30 percent as predicted, the commitments of the pension funds are also bound to increase.

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