Iceland: jobs and pay

What is the unemployment rate in Iceland?

Iceland's seasonally adjusted unemployment rate was 6.8% in August 2026, with about 15,900 people aged 16 to 74 unemployed, according to Statistics Iceland's labour force survey release of 23 September 2026. Unadjusted unemployment was 6.0%.

Unemployment has risen sharply. In the second quarter of 2026 it averaged 6.5%, against 3.5% a year earlier, according to the quarterly labour market release. Among people aged 16 to 24 it reached 17.3%. Monthly survey figures move around, so the quarterly figures are steadier.

Official sources: Statistics Iceland: labour market, August 2026 · Statistics Iceland: labour market, 2nd quarter 2026

What is the average salary in Iceland?

Average regular monthly earnings in Iceland were 816,000 krónur in 2025, according to Statistics Iceland's release on wage distributions in 2025, published 13 May 2026. For full-time employees, regular earnings averaged 913,000 krónur and the median was 826,000 krónur. Total earnings, including overtime and other payments, averaged 1,058,000 krónur for full-time staff.

The median is the better guide to a typical wage, since about 64% of full-time employees earned less than the average. These figures are before tax and are preliminary.

Official sources: Statistics Iceland: wage distributions in the Icelandic labour market 2025

How fast are wages rising in Iceland?

Iceland's wage index rose 5.7% in the twelve months to August 2026, according to Statistics Iceland's monthly wage index release of 22 September 2026. The index rose 0.1% from July, and the basic wage index was up 5.8% over the year.

Compare wage growth with inflation to see whether pay is keeping up: consumer prices rose 5.9% in the year to September 2026, according to the consumer price index, so real wages were roughly flat. The index tracks pay for the same jobs, not average earnings.

Official sources: Statistics Iceland: monthly wage index, August 2026 · Statistics Iceland: consumer price index, September 2026

How many people work in Iceland?

An average of 222,300 people aged 16 to 74 were employed in Iceland in the second quarter of 2026, according to Statistics Iceland's labour market release for that quarter. The employment rate was 75.8% and the labour force was 237,700.

Employment fell by 9,000 people compared with the second quarter of 2025, and the employment rate dropped 4.3 percentage points. Men had an employment rate of 79% and women 72.4%. Usual working hours averaged 38.1 a week.

Official sources: Statistics Iceland: labour market, 2nd quarter 2026

What is Iceland's minimum wage?

The ILO puts the statutory minimum wage in Iceland at 425,985 ISK a month (about $3,088) in 2024. No year since 2019 has been higher.

What is the average monthly salary in Iceland?

According to the ILO, average monthly earnings of employees in Iceland was $6,349 a month in 2020. The peak was $7,127 a month in 2018 and the low $3,648 a month in 2013. Across Europe & Central Asia the middle value was $1,671 a month, and Iceland placed 4th highest of 43. Worldwide: 4th of 93.

What is the unemployment rate in Iceland?

The ILO puts the unemployment rate in Iceland at 3.6% in 2025. The peak was 7.6% in 2010 and the low 2.3% in 2007. Across Europe & Central Asia the middle value was 5.5%, and Iceland placed 39th highest of 47. Worldwide: 115th of 174.

What is youth unemployment in Iceland?

In 2025, unemployment among 15 to 24 year olds in Iceland was 8.7%, according to the ILO. Since 2005 it has ranged from 5.9% (2018) to 15.9% (2010). Across Europe & Central Asia the middle value was 14.2%, and Iceland placed 42nd highest of 47. Of 174 countries with 2025 data, 121st highest.

What is the labour force participation rate in Iceland?

74.9%: that is the labour force participation rate in Iceland for 2025, according to the ILO. Since 2005 it has ranged from 73.4% (2021) to 77.4% (2016). Europe & Central Asia median: 60.3%; Iceland is 1st highest of 47. World rank, highest first: 17th of 174.

What share of women in Iceland are in the labour force?

The ILO puts the labour force participation rate for women in Iceland at 70.0% in 2025. The peak was 73.0% in 2016 and the low 69.1% in 2021. It is 2nd highest of 47 in Europe & Central Asia, where the median is 54.6%. Of 174 countries with 2025 data, 18th highest.

What share of adults in Iceland have a job?

According to the ILO, the employment to population ratio in Iceland was 72.2% in 2025. Its high point since 2005 was 2007, at 75.4%; its low point was 2011, at 69.0%. It is 1st highest of 47 in Europe & Central Asia, where the median is 56.6%. World rank, highest first: 17th of 174.

How many workers in Iceland are self-employed or family workers?

According to the ILO, the share of workers who are own-account or contributing family workers in Iceland was 8.4% in 2025. No year since 2005 has been lower. Across Europe & Central Asia the middle value was 11.0%, and Iceland placed 34th highest of 47. Of 174 countries with 2025 data, 150th highest.

What share of jobs in Iceland are salaried?

The ILO puts the share of workers who are paid employees in Iceland at 86.7% in 2025. No year since 2005 has been higher. Europe & Central Asia median: 85.5%; Iceland is 18th highest of 47. Worldwide: 31st of 174.