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Directorate of Labour Frontpage
Directorate of Labour Frontpage

Directorate of Labour

Stronger support for young people to prevent their exit from the labour market

2nd May 2023

The aim is to prevent early withdrawal of young people with mental health problems from the labour market.

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Guðmundur Ingi Guðbrandsson, Minister of Social Affairs and Labour, Páll Ásgeir Guðmundsson, Director of Economic and Competitiveness at the Confederation of Icelandic Employers, Unnur Sverrisdóttir, Director of the Directorate of Labour, and Vigdís Jónsdóttir, Director of the VIRK Vocational Rehabilitation Fund, signed a declaration of intent today to increase significantly the level of individual support for vulnerable young people. More than ISK 450 million will be spent on the project over a three-year period.

The aim is to prevent premature displacement of young people with mental disorders from the labour market, as well as to increase social participation of young people who belong to the so-called NEET group, i.e. young people who are not in employment, studying or training.

  • The Directorate of Labour will hire ten professional contacts who will provide the group with individualized support in seeking a job. This is an innovation in the labour market resources under the auspices of the Directorate. A total of ISK 150 million per year will be spent for three years.

  • VIRK has been providing services in the area of employment relations since 2012 but will increase its employment relations further. The service will be opened to more groups than before, which will increase their opportunities significantly. The contribution of VIRK is in addition to the above mentioned financial contributions.

  • The Confederation of Icelandic Employers will help ensure that young people are provided with jobs at the service of the employment services. In addition, the Confederation will promote education in the workplace about the importance of facilitating the recruitment of individuals belonging to vulnerable groups.