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Directorate of Labour Frontpage
Directorate of Labour Frontpage

Directorate of Labour

The Icelandic labour market in August 2026

11th September 2026

The unemployment rate in August was 3,9%, down from 4,0% in July. There were on average 8.322 unemployed people in August 2026.

Unemployment by gender:

The unemployment rate for men in August was 4,2%, same as in July. The unemployment rate for women was 3,7% in August, same as in July.

Unemployment among young adults:

There were 2.197 young adults, aged 18-29 years unemployed in August 2026, up from 2.165 in July.

Long-term unemployment

There were 1.734 long-term unemployed (unemployed longer than 12 months) at the end of August 2026.

Forecast for September 2026:

It is expected that the unemployment rate will go up to 4,1% in September.