Unemployment in Iceland 8.6 Percent, Down from 2010 Skip to content

Unemployment in Iceland 8.6 Percent, Down from 2010

The jobless rate in Iceland in March measured 8.6 percent with 13,757 people being unemployed on average. The Directorate of Labor estimates that unemployment will decrease to 8.1-8.5 percent in April.

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From the protests following the banking collapse in 2008. Photo by Geir Ólafsson.

The directorate also pointed out that the jobless rate was 9.0 percent in April 2010 and 9.3 percent in March that year, so unemployment has decreased compared to the same period last year, visir.is reports.

Lars Christensen, director of the analysis department of Danske Bank, who spoke on the bank’s economic forecast for Iceland in Íslandsbanki on Tuesday, said the gross domestic product (GDP) in Iceland is expected to be around three or four percent in the next two to three years, inflation will continue to drop and the Icelandic króna is likely to appreciate by 25 percent in the coming years, ruv.is reports.

Christensen believes the unemployment rate in Iceland will remain around ten percent. The report states that the outcome of Saturday’s Icesave referendum creates more uncertainty and could have a negative impact on the flow of capital to Iceland and the state’s credit rating.

However, it is not assumed that the rejection of the Icesave legislation will slow down the economic recovery and growth in GDP.

Christensen said that Icelanders should stop fixating on the banking collapse and what happened back then; it is time to look ahead: “Spring is coming, be positive,” he urged.

Interestingly, Danske Bank issued an unfavorable report of the Icelandic economy in 2006 which prompted harsh reactions among the Icelandic banks.

At the time, Christensen warned about the rapid growth of the Icelandic banks and foresaw an imminent crisis, as stated on amx.is, but was not taken seriously. Now Icelanders take more note of his analysis.

Click here to read Danke Bank’s report in English and here to read more about Christensen’s comments.

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