According to seasonally adjusted figures from Statistics Iceland's Labour Market Survey, unemployment was 8,500 in August, or 4.4%, which is 1.3 percentage points higher than in July. Seasonally adjusted labour force participation was 80.0%, which is 1.2 percentage points lower than in July. Seasonally adjusted employment rate was 76.9% for August 2019, which is the second lowest rate in six months.
Looking at the past six months, the seasonally adjusted trend shows that the rate of labour force participation fell by 1.4 percentage points and the employment rate by 1.7 percentage points, while unemployment rose by 0.3 percentage points.
According to unadjusted measurements, it is estimated that around 204,300 people 16–74 years of age were on average in the labour market in August 2019. This is equivalent to a labour force participation of 79.5% (± 2.7). Of the labour force, 195,800 (± 3,800) were employed and 8,600 (± 700) were unemployed and in search of a job. The employment rate was 76.2% (± 3.0) while the unemployment rate was 4.2% (± 1.3).
A comparison of unadjusted measurements for August 2018 and 2019 shows that the labor force decreased by 2,400 people and that its proportion of the general population decreased by almost 3 percentage points. The number of employed persons decreased by 5,800, the proportion in August being about 4 percentage points lower than it was at the same time in 2018.
According to unadjusted measurements, there were about 3,500 more people unemployed in August 2019, than at the same time in 2018 when they were 5,100. Unadjusted measurements also show a considerable increase in the unemployment rate between years, or by 1.7 percentage points. In August 2019, more people are estimated to be outside the labour market, or 52,600, compared with 44,100 in the same month last year.
All numbers are rounded to the nearest hundred.
Flow Chart — Labour force 16–74 years — August 2019 measures
Figures may not add up because of rounding. CI (95%) Unemployment rate: Total ±1.4; males ±1.7; females ±2.4.
| Table 1. Labour market in July — Original | ||||||
| CI | CI | CI | ||||
| 2017 | (±95%) | 2018 | (±95%) | 2019 | (±95%) | |
| Total 16–74 years | ||||||
| Activity rate | 82.8 | 2,2 | 82.4 | 2.3 | 79.5 | 2.7 |
| Employment rate | 80.8 | 2,4 | 80.4 | 2.2 | 76.2 | 3.0 |
| Unemployment rate | 2.4 | 1,2 | 2.5 | 0.8 | 4.2 | 1.3 |
| Hours of work | 40.4 | 1,4 | 41.8 | 0,9 | 40.5 | 1,3 |
| Labour force | 200,700 | 5,500 | 206,700 | 3,800 | 204,300 | 4,200 |
| Employed | 195,800 | 5,900 | 201,600 | 3,800 | 195,800 | 3,800 |
| Unemployed | 4,800 | 2,500 | 5,100 | 500 | 8,600 | 700 |
| Inactive | 41,600 | 5,500 | 44,100 | 1,700 | 52,600 | 2,500 |
| Est. population | 242,300 | • | 250,800 | • | 257,000 | • |
| Table 2. Labour market last 6 months — seasonal adjustment | ||||||
| Mar-19 | Apr-19 | May-19 | Jun-19 | Jul-19 | Aug-19 | |
| Total 16–74 years | ||||||
| Activity rate | 82.6 | 82.0 | 80.5 | 81.4 | 81.2 | 80.0 |
| Employment rate | 80.1 | 79.3 | 76.7 | 78.7 | 78.7 | 76.9 |
| Unemployment rate | 3.1 | 3.3 | 4.8 | 3.3 | 3.1 | 4.4 |
| Hours of work | 39.4 | 40.1 | 39.5 | 39.0 | 38.9 | 39.6 |
| Labour force | 210,000 | 209,500 | 210,000 | 207,500 | 207,800 | 205,000 |
| Employed | 203,600 | 202,600 | 200,000 | 200,700 | 201,300 | 195,500 |
| Unemployed | 6,500 | 6,900 | 10,000 | 6,800 | 6,500 | 8,500 |
| Inactive | 44,200 | 45,900 | 50,700 | 47,500 | 48,100 | 52,300 |
| Est. population | 254,200 | 255,400 | 260,800 | 255,000 | 255,900 | 256,800 |
| Table 3. Labour market last 6 months — seasonal adjustment trend | ||||||
| Mar-19 | Apr-19 | May-19 | Jun-19 | Jul-19 | Aug-19 | |
| Total 16–74 years | ||||||
| Activity rate | 81.7 | 81.6 | 81.5 | 81.4 | 81.4 | 80.3 |
| Employment rate | 79.0 | 78.9 | 78.8 | 78.7 | 78.6 | 77.3 |
| Unemployment rate | 3.2 | 3.3 | 3.4 | 3.4 | 3.4 | 3.5 |
| Hours of work | 39.5 | 39.5 | 39.4 | 39.3 | 39.2 | 39.9 |
| Labour force | 208,400 | 208,500 | 208,300 | 208,100 | 208,000 | 207,600 |
| Employed | 201,600 | 201,500 | 201,200 | 201,000 | 200,900 | 198,900 |
| Unemployed | 6,700 | 7,000 | 7,100 | 7,100 | 7,000 | 7,100 |
| Inactive | 46,700 | 46,900 | 47,200 | 47,400 | 47,600 | 49,800 |
| Est. population | 255,100 | 255,400 | 255,500 | 255,500 | 255,600 | 256,800 |
About the data
August 2019 comprises five weeks, from July 29th to August 30th 2019. The total sample size for the Labour Force Survey in August was 1,926 persons 16–74 years old who were randomly selected from the registered population. When individuals out of scope had been removed from the sample, the net sample was 1,875 persons. In total, the number of responses was 1,158 individuals corresponding to a response rate of 61.8%.
It should be noted that all numbers are rounded to the nearest hundred, and results are weighted by sex and age groups. All numbers for the first two months in every quarter of the year are preliminary until the end of the quarter.
Correction
Along with this month's publication, the aggregated seasonally adjusted number of people at work during the reference week has been corrected. Since March 2019, this measure has been incorrect.