In May 2025, the unemployment rate was 3.1% according to seasonally adjusted results from the Icelandic labour force survey. The seasonally adjusted employment rate was 78.6% and the activity rate 81.1%. Seasonally adjusted unemployment decreased by 0.2 percentage points from the previous month. The employment rate remained nearly unchanged and the labour force participation rate decreased slightly, or by 0.3 percentage points.
According to the survey, 10,700 individuals aged 16–74 were unemployed in May. The measured unemployment rate was 4.5%, measured avtivity rate was 82.3% and measured employment rate was 78.6%.