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Directorate of Labour

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The Icelandic labour market in August 2025

10th September 2025

The unemployment rate in August was 3,4% and stayed the same between months.

Summary

The unemployment rate in August was 3,4% and stayed the same between months.

There were on average 7.403 unemployed people in August 2025.

Unemployment by gender:

The unemployment rate for men in August was 3,5% and stayed the same as in July. The unemployment rate for women was 3,3% in August and stayed the same as in July.

Unemployment among young adults:

There were 1902 young adults, aged 18-29 years unemployed in August 2025, down from 1942 in July.

Long-term unemployment

There were 1.511 long-term unemployed (unemployed longer than 12 months) at the end of August 2025.

Forecast for September 2025:

It is expected that the unemployment rate will increase to 3,5% in September.