The unemployment rate in October 2022 was 2.8% according to seasonally adjusted figures from the Icelandic Labour Force Survey. The seasonally adjusted activity rate was 79.8% and the employment rate 77.5%. The seasonally adjusted unemployment rate decreased by 0.8 percentage points between months while the seasonally adjusted employment rate increased by 0.9 percentage points. The trend of the seasonally adjusted unemployment rate was stable over the past six months while the trend of the employment rate decreased by 0.2 percentage points.

Based on unadjusted measures from the Labour Force Survey, 218,100 (±7,500) individuals 16-74 years old were active on the Icelandic labour market in October 2022, which is equivalent to an 79.3% (±2.7) activity rate. Of the labour force, 212,300 (±6,100) were employed and 5,800 (±2,800) unemployed and looking for a job. The employment rate was estimated to be 77.1% (±2.9) and the unemployment rate 2.7% (±1.3). Compared with October 2021, the unemployment rate decreased by 2.8 percentage points between years and the employment rate increased by 2.5 percentage points.

Around 19,500 individuals had unmet need for employment (i.e., labour market slack) in October 2022 which corresponds to 8.7% of the labour force and potential labour force. Labour market slack has decreased by 5.1 percentage points between years when compared to October 2021. The seasonally adjusted trend of labour market slack has decreased by 0.2 percentage points over the past six months.

Please note that the sum of sub-items might be inconsistent with the overall results due to rounding.

About the data
The Icelandic Labour Force Survey for October 2022 covers four weeks, from October 3 until October 30. The sample consisted of 1,522 individuals 16-74 years old with legal residence in Iceland. Excluding those from the sample who were living abroad or deceased, the net sample consisted of 1,474 individuals. Usable answers were obtained from 899 individuals which corresponds to a 61.0% response rate.