According to Statistics Iceland’s (SI) labour force survey, 212,400 persons were employed in the domestic labour market in Q4/2022, and the labour participation rate was just under 80%. Worker numbers were up by 11,900 year-on-year during the quarter. According to the SI survey, 7,200 people were unemployed during the period, giving an unemployment rate of 3.3%, the lowest by this measure since Q4/2018.
This aligns very well with data from the Directorate of Labour (DoL), which show that registered unemployment also measured 3.3% in Q4/2022. According to recent figures, however, the jobless rate rose from 3.4% to 3.7% in January. Unemployment is generally higher during the winter, especially in January and February, but then eases over the summer.