According to recent figures from the Directorate of Labour (DoL), registered unemployment weighed in at 3.2% in July, around the same as in the month beforehand, when it measured 3.3%. Unemployment has fallen swiftly after peaking at 11.6% in January 2021, and is now broadly where it was at the beginning of 2019, just before the collapse of airline WOW Air. It rose after WOW failed in spring 2019, and then the pandemic pushed it through the roof.
The jobless rate declined in July in all regions of Iceland except the West Fjords, where it remained flat. As in the recent term, it was highest on the Suðurnes peninsula, at 5.5%, although there, too, it has plummeted since peaking at 26% in January 2021. The second-highest unemployment rate, 3.5%, was in greater Reykjavík.