Unemployment rate 2.6%
In the third quarter of 2006, 4,600 persons were unemployed and in search of a job or 2.6% of the labour force. The male unemployment rate was 2.2% and the female unemployment rate was 3.0%. The unemployment rate was highest amongst persons aged 16-24 years old, or 5.1%.
In the third quarter of 2005 the unemployment rate was 1.8%, 1.2% amongst men and 2.4% amongst women. The unemployment rate was highest amongst young people aged 16-24 years old, or 3.5%.
Persons are classified as unemployed who have no employment, are actively seeking a job and could start working within two weeks or have found a job which starts within 3 months.
40.5% of unemployed persons have searched for a job for less than a month and 30.4% have found a job that starts within 3 months
Of those who were unemployed in the third quarter of 2006, 1,400 had found a job that starts within 3 months, or 30.4%, 1,900, or 40.5%, had searched for less than a month for a job and 700 persons, or 15.4%, had searched longer than 6 months.
| Table 1. Unemployed by duration of search for job | ||||||||
| 3. quarter 2003 | 3. quarter 2004 | 3. quarter 2005 | 3. quarter 2006 | |||||
| Number | % | Number | % | Number | % | Number | % | |
| Unemployed | 4,400 | 100.0 | 4,300 | 100.0 | 2,900 | 100.0 | 4,600 | 100.0 |
| Already found work | 600* | 14.1* | 500* | 12.7* | 500* | 15.3* | 1,400 | 30.4 |
| Less than one month | 1,100 | 25.9 | 1,700 | 40.1 | 1,200 | 40.5 | 1,900 | 40.5 |
| 1 - 2 months | 800* | 19.0* | 1,000 | 22.8 | 400* | 12.6* | 300* | 6.9* |
| 3 til 5 months | 600* | 14.7* | 300* | 7.5* | 300* | 9.4* | 300* | 6.9* |
| 6 months or more | 1,100 | 26.3 | 700* | 16.9* | 700* | 22.2* | 700* | 15.4* |
| Figures may not add up because of rounding. | ||||||||
The number of employed persons increased by 9,300 and the activity rate was 84.2%
The number of employed persons in the third quarter of 2006 was 173,300 and had increased by 9,300 since the same quarter one year earlier. The number of persons in the labour force was 177,900, which corresponds to activity rate of 84.2%. The activity rate of men was 88.8% and the activity rate of women was 79.2%. The labour force is considered to consist of employed and unemployed persons. People are classified as working (employed) if they worked one hour or more in the reference week or were absent from work they usually carry out.
The activity rate was 83.1% in the third quarter of 2005. The activity rate of men was 88.3% and the activity rate of women was 77.7%. The number of persons in the labour market increased by 10,900 persons from the third quarter of 2005 to the third quarter of 2006.
Employed persons work 44,1 hours per week
In the third quarter of 2006 the average number of working hours of those who were working in the reference week was 44.1 hours. Men worked 48.4 hours and women worked 38.2 hours on average.
In the third quarter of 2005 the average working hours were 43.8 hours. Men worked 48.6 hours and women 37.4 hours.
| Table 2. Labour market | ||||||
| 3. quarter 2003 | 3. quarter 2004 | 3. quarter 2005 | 3. quarter 2006 | |||
| Activity rate | Percentage | 84.3 | 81.5 | 83.1 | 84.2 | |
| Unemployment rate | Percentage | 2.6 | 2.6 | 1.8 | 2.6 | |
| Labour force | Estimated No. | 167,300 | 162,300 | 167,000 | 177,900 | |
| Employed | Estimated No. | 162,900 | 158,000 | 164,000 | 173,300 | |
| Unemployed | Estimated No. | 4,400 | 4,300 | 2,900 | 4,600 | |
| Inactive | Estimated No. | 31,100 | 36,800 | 34,000 | 33,500 | |
| Working hours | Hours | 42.9 | 43.7 | 43.8 | 44.1 | |
Implementation of the Labour Force Survey
Since 2003 Statistics Iceland has conducted a continuous labour force survey with quarterly results. The third quarter of 2006 covers 13 weeks, from 3rd of July to 1st of October. The total sample size was 3,910 persons aged 16-74 years old selected randomly from the National registry. When those who had passed away or those who were living abroad had been deducted from the sample the net sample was 3.801 persons. In total the number of usable answers was 3,132 which corresponds to 82.4% response rate. All figures have been weighted by sex and age groups. The confidence limits of the results on unemployment rate is ± 0,7%.