The Icelandic labour market in October 2025

Summary

The unemployment rate in October was 3,9%, up from 3,5% in September.

There were on average 8.030 unemployed people in October 2025.

Unemployment by gender:

The unemployment rate for men in October was 4,1%, up from 3,6% in September. The unemployment rate for women was 3,8% in October, up from 3,4% in September.

Unemployment among young adults:

There were 2.267 young adults, aged 18-29 years unemployed in October 2025, up from 2.007 in September.

Long-term unemployment

There were 1.619 long-term unemployed (unemployed longer than 12 months) at the end of October 2025.

Forecast for November 2025:

It is expected that the unemployment rate will increase and be in the range of 4,2% to 4,3% in October. Labour market outlook has deteriorated in recent months, and the Directorate of Labour therefore anticipates that unemployment will continue to rise in coming months, exceeding the normal seasonal variation.