In the second quarter of 2021, the activity rate for 16 to 74 year olds was 80.2%, which is an increase of 2.3 percentage points from the same quarter in 2020. The number of employed in the second quarter of 2021 was 194,500 and the employment rate was 73.9%. The employment rate for women was 69.5% and 78.0% for men. In the capital region, the percentage of employed people was 74.8% and 72.3% outside the capital region.
From the second quarter of 2020 to the second quarter of 2021, the number of employed persons increased by 7,200 and the employment rate of the total population increased by 2.2 percentage points. The number of employed women increased by 4,000 and the number of employed men by 3,200.
In comparison, 187,300 were employed in the second quarter of 2020 and the employment rate was 71.7%. The employment rate for women was 67.2% and 75.9% for employed men. In the capital region employment rate was 72.5% and 70.3% outside the capital region.
These results can be interpreted as an indication of a recovering labour market from the economic downturn caused by Covid-19.
Hours per week
In the second quarter of 2021, the average number of actual working hours per week was 36.5 hours for those who worked during the reference week, 31.9 hours for women and 40.2 hours for men. Compared with the second quarter of 2020 the average number of actual working hours was 36.9 hours, 33.5 hours for women and 39.4 for men. Total working hours per week are now slightly less than they were in the same quarter of 2020. However, the number of working hours for women decreased by just over one and a half hours per week, while the number of working hours for men increased by almost one hour.
Employed persons worked on average 38.5 hours in a typical week in the second quarter of 2021 compared with 38.9 in the second quarter of 2020, regardless of whether they were at work in the reference week or not.
Unemployment 7.9%
The average number of persons in unemployment in the second quarter of 2021 was 16,700 persons, or 7.9% of the labour force 16 to 74 years old. The unemployment rate for women was 8.3% and for men 7.6%. At the same time, about 7,600 jobs were available in the Icelandic labour market according to Statistics Iceland’s job vacancy survey, or about 4.0% of jobs according to previously published figures. In comparison, 16,100 persons were unemployed in the second quarter of 2020 and the unemployment rate was 7.9%.
Within the age group 16 to 24 years, the unemployment rate was 20.0%, which is a significant increase from the same quarter in 2020 or by 4.2 percentage points. Over the period, however, unemployment among 25 to 54 year olds decreased by 0.6 percentage points, from 7.1% to 6.5%. Unemployment also decreased among those aged 55 to 74, or by one percentage point, from 4.4% in the second quarter of 2020 to 3.4% in the second quarter of 2021.
Fewer inactive
In the second quarter of 2021, 52,100 persons were inactive or 19.8% of the population aged 16 to 74 years. Of women, 30,900, or 24.2%, were inactive and of men, 21,200 were inactive or 15.6%. In comparison, in the same quarter of 2020, 57,700 were inactive or 22.1% of the population. Of women, 33,900 or 26.9% and of men 23,800 were inactive or 17,6%.
The majority (17,900) of those inactive in the second quarter of 2021 regarded themselves as retired, or 34.3%. Disabled were 12,400 (24.5%), 7,500 were students (14.4%) and 5,500 individuals were ill or temporarily unable to work (10.5%). About 2,600 of those who were inactive considered themselves unemployed, or 5.1%. These individuals are not considered unemployed in the LFS as they do not meet the survey's definition of unemployment. However, the main status of inactive individuals is determined by how they define themselves. About 3,500 persons worked at home or were on maternity leave, or 6.8%, and about 2,300 persons, or 4.4%, defined their status in some other way.
Telework from home
In the second quarter of 2021, a total of 48.8% of employees aged 25 to 64 years worked remotely from home in their main job. Thereof, 10.3% were employees who usually worked from home while 38.5% sometimes worked from home. This is an increase from the previous year when 40.2% of employees worked to some extent remotely from home in their main job, 5.9% usually worked from home and 34.3% sometimes. Working remotely from home only applies to the main work of individuals and not to domestic work or other work at home.
Actual working hours for employees 25 to 64 years old in the second quarter of 2021 were 39.5 on average per week, 40.4 hours for employees who worked from home and 38.7 hours for those who never work from home. In comparison, employees aged 25 to 64 years worked an average 39.9 actual hours in the second quarter of 2020, those who worked at home worked 41.1 hours and those who never work at home 39.1 hours.
In the second quarter of 2021, employees worked on average 13.5 hours remotely from home or about 36.4% of their actual hours. In the second quarter of 2020, employees who worked part-time at home worked 18.9 hours on average, or 49.3% of the hours worked.