Unemployment Rate Continues To Drop Skip to content
Westman Islands fish processing plant
Photo: Golli. Workers share some laughs at a fish processing plant in the Westman Islands.

Unemployment Rate Continues To Drop

According to a monthly report from the Directorate of Labour, registered unemployment rates stood at 6.1% in July, a considerable drop from June’s 7.4% and February of 2021’s 11.4%. While just over 2000 people were removed from unemployment listings between June and July, long-term unemployment numbers are still high, nearly doubling since last year.

By the end of July, 12.537 individuals were unemployed. The Directorate of Labour predicts that unemployment rates will continue to drop in August due to the government’s employment drive and increased activity in society. Their estimate puts august unemployment rates at 5.3-5.7%.

By the end of July, 5.361 job seekers had been unemployed for more than 12 months. That number went down by 457 since June but is still considerably higher than it was at the same time last year when that number stood at 2.854. The Directorate predicts that the number of long-term unemployed will continue to drop in the near future.

In total, 1.123 new jobs were advertised with the Directorate of Labour in July. The positions are in various industries but most were in the service industry or about 396.

According to Minister of Social Affairs and Children Ásmundur Einar Daðason, we’re nearing the same number of unemployed as in February 2020, before the COVID pandemic. “That’s amazing.” Ásmundur stated. “we’re expecting unemployment rates to continue to drop over the next few months and the numbers show that the action we’ve taken for the job market is proving successful.”

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