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Directorate of Labour Frontpage
Directorate of Labour Frontpage

Directorate of Labour

The Icelandic labour market in January 2026

10th February 2026

The unemployment rate in January was 4,9%, up from 4,4% in December. There were on average 9.748 unemployed people in January 2026.

Unemployment by gender:

The unemployment rate for men in January was 5,3%, up from 4,8% in December. The unemployment rate for women was 4,3% in January, up from 4,0% in December.

Unemployment among young adults:

There were 2.756 young adults, aged 18-29 years unemployed in January 2026, up from 2.546 in December.

Long-term unemployment

There were 1.772 long-term unemployed (unemployed longer than 12 months) at the end of January 2026.

Forecast for February 2026:

It is expected that the unemployment rate will increase and be in the range of 5,0-5,1% in February.