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Directorate of Labour Frontpage
Directorate of Labour Frontpage

Directorate of Labour

The Icelandic labour market in December 2025

9th January 2026

The unemployment rate in December was 4,4%, up from 4,3% in November. There were on average 9.043 unemployed people in December 2025.

Unemployment by gender:

The unemployment rate for men in December was 4,8%, up from 4,5% in November. The unemployment rate for women was 4,0% in December and was 4,0% in November.

Unemployment among young adults:

There were 2.546 young adults, aged 18-29 years unemployed in December 2025, up from 2.490 in November.

Long-term unemployment

There were 1.757 long-term unemployed (unemployed longer than 12 months) at the end of December 2025.

Forecast for January 2026:

It is expected that the unemployment rate will increase and be in the range of 4,6-4,7% in January.