The Icelandic labour market in July 2025

Summary

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

There were on average 7.448 unemployed people in July 2025.

Unemployment by gender:

The unemployment rate for men in July was 3,5%, down from 3,6% in June. The unemployment rate for women was 3,3% in July, up from 3,2% in June.

Unemployment among young adults:

There were 1942 young adults, aged 18-29 years unemployed in July 2025, up from 1913 in June.

Long-term unemployment

There were 1.548 long-term unemployed (unemployed longer than 12 months) at the end of July 2025.

Forecast for August 2025:

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