The Icelandic labour market in July 2026

Summary

The unemployment rate in July was 4,0%, unchanged from June.

There were on average 8.423 unemployed people in July 2026.

Unemployment by gender:

The unemployment rate for men in July was 4,2%, down from 4,3% in May. The unemployment rate for women was 3,7% in July, unchanged from June.

Unemployment among young adults:

There were 2.165 young adults, aged 18-29 years unemployed in July 2026, down from 2.274 in June.

Long-term unemployment

There were 1.565 long-term unemployed (unemployed longer than 12 months) at the end of July 2026.

Forecast for August 2026:

It is expected that the unemployment rate will remain mostly unchanged and be in the range of 3,9-4,0% in August.