Economy, jobs and prices in Southern Peninsula, Iceland: official figures
Tax registers counted 17,117 employed residents of the Southern Peninsula (Suðurnes) in August 2026, 7.5% of all people in work in Iceland.
Is employment growing in Southern Peninsula?
Employment among residents of the Southern Peninsula (Suðurnes) was virtually unchanged in the year to August 2026 (Iceland: 0.1%), 4th fastest growth of 8 regions.
Source: Statistics Iceland (Hagstofa Islands) · saved copyHow many immigrants work in Southern Peninsula?
Immigrants held 37.6% of jobs filled by residents of the Southern Peninsula (Suðurnes) in August 2026, the highest of 8 regions (national share 23.9%).
Source: Statistics Iceland (Hagstofa Islands) · saved copyWhat is the employment rate in Southern Peninsula?
About 73 in every 100 residents of the Southern Peninsula (Suðurnes) aged 16 to 74 were registered as employed in August 2026, the lowest of 8 regions.
Source: Statistics Iceland (Hagstofa Islands) · saved copyWhat are average earnings in Southern Peninsula?
Average income from work was ISK 6.78 million per taxpayer in the Southern Peninsula (Suðurnes) in 2025, 4th highest of 8 regions, while capital income averaged ISK 0.55 million.
Source: Statistics Iceland (Hagstofa Islands) · saved copyMore figures
- Since August 2019 the number of employed residents of the Southern Peninsula (Suðurnes) has increased by 13.4%, compared with 13.3% nationally. Source: Statistics Iceland (Hagstofa Islands) · saved copy
How Southern Peninsula compares with other regions
Change in employed residents, Aug 2025 to Aug 2026 (%) (2026-08)
Southern Peninsula ranks 4 of 8, highest first.
| Rank | Region | Change in employed residents, Aug 2025 to Aug 2026 (%) |
|---|---|---|
| 1 | Westfjords | 2.4% |
| 2 | Southern Region | 1.1% |
| 3 | Northeastern Region | 0.4% |
| 4 | Southern Peninsula | 0.0% |
| 5 | Capital Region | -0.0% |
| 6 | Northwestern Region | -0.0% |
| 7 | Eastern Region | -0.3% |
Immigrants as a share of employed residents (%) (2026-08)
Southern Peninsula ranks 1 of 8, highest first.
| Rank | Region | Immigrants as a share of employed residents (%) |
|---|---|---|
| 1 | Southern Peninsula | 37.6% |
| 2 | Westfjords | 28.6% |
| 3 | Southern Region | 25.9% |
| 4 | Eastern Region | 25.7% |
| 5 | Capital Region | 23.4% |
| 6 | Western Region | 19.7% |
| 7 | Northeastern Region | 15.8% |
Employed residents per 100 people aged 16-74 (2026-08)
Southern Peninsula ranks 8 of 8, highest first. Registered employed residents (all ages 16-74) in August 2026 divided by population aged 16-74 on 1 January 2026.
| Rank | Region | Employed residents per 100 people aged 16-74 |
|---|---|---|
| 2 | Westfjords | 79.6 |
| 3 | Northwestern Region | 79.0 |
| 4 | Northeastern Region | 76.9 |
| 5 | Southern Region | 76.4 |
| 6 | Western Region | 75.3 |
| 7 | Capital Region | 75.2 |
| 8 | Southern Peninsula | 72.8 |
Mean income from work per taxpayer (thousand ISK) (2025)
Southern Peninsula ranks 4 of 8, highest first.
| Rank | Region | Mean income from work per taxpayer (thousand ISK) |
|---|---|---|
| 1 | Eastern Region | 7,459 |
| 2 | Capital Region | 7,425 |
| 3 | Westfjords | 6,928 |
| 4 | Southern Peninsula | 6,776 |
| 5 | Western Region | 6,749 |
| 6 | Northeastern Region | 6,591 |
| 7 | Southern Region | 6,431 |
More on Southern Peninsula: overview · education and schools · poverty and living standards · Iceland
Sources
- Statistics Iceland (Hagstofa Islands): Income by municipalities and sex 1990-2025, from individual tax returns, thousand ISK (table TEK01002; 2015-2025 saved), read 24 October 2026 · saved copy (SHA-256 03d347ed3a53…)
- Statistics Iceland (Hagstofa Islands): Register based employment of persons with legal residence in Iceland by month, sex, age, origin and region 2003-2026 (table VIN10012; August and December 2018-2026 saved), read 24 October 2026 · saved copy (SHA-256 f8f0f8986cec…)
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