LU3: Combined rate of unemployment and potential labour force in Iceland

Iceland: LU3: Combined rate of unemployment and potential labour force was 6.68 in 2023. ▲ Rising

Latest (2023)
6.68
Change on year
down 0.1%
World rank
59th
of 89 countries
All-time high
10.3
in 2010
All-time low
3.86
in 2007
Years of data
22
1999–2023

LU3: Combined rate of unemployment and potential labour force in Iceland, 1999–2023

02.557.5101999201120231999: 4.72000: 4.92001: 5.82002: 6.62006: 4.42007: 3.92008: 4.82009: 9.82010: 10.32011: 102012: 10.22013: 9.62014: 9.12015: 8.42016: 6.92017: 6.42018: 5.22019: 6.22020: 9.12021: 9.82022: 6.72023: 6.7

Source: International Labour Organization.

Analysis

The most recent figure for lu3: combined rate of unemployment and potential labour force in Iceland is 6.68, measured in 2023.

Compared with earlier readings it is down 0.1% on the previous year and down 30.8% over ten years.

Over the whole period, lu3: combined rate of unemployment and potential labour force in Iceland peaked at 10.3 in 2010 and was at its lowest, 3.86, in 2007.

Iceland ranks 59th of 89 countries on this measure, in the middle of the range.

The long-run direction has been consistently rising across the 22 years of available data.

LU3: Combined rate of unemployment and potential labour force in Iceland, year by year

Annual values for LU3: Combined rate of unemployment and potential labour force (previous ILO definition - ICLS13) (15+) in Iceland, 1999 to 2023.
Year Value Change
1999 4.68
2000 4.9 +4.7%
2001 5.77 +17.8%
2002 6.64 +15.0%
2006 4.44 -33.2%
2007 3.86 -12.9%
2008 4.83 +24.9%
2009 9.79 +103.0%
2010 10.3 +5.1%
2011 10.04 -2.5%
2012 10.16 +1.3%
2013 9.64 -5.1%
2014 9.14 -5.2%
2015 8.43 -7.8%
2016 6.95 -17.6%
2017 6.36 -8.4%
2018 5.22 -18.0%
2019 6.15 +18.0%
2020 9.1 +47.9%
2021 9.8 +7.7%
2022 6.68 -31.8%
2023 6.68 -0.1%

Iceland compared with similar countries

  • Iceland's 6.68 is below the median for high income countries, which is 7.45, 90% of the median. (46 countries reporting)
  • Iceland's 6.68 is below the median for Europe & Central Asia, which is 8.71, 77% of the median. (41 countries reporting)

Averages by decade

DecadeAverage LowestHighest Years
1990s 4.68 4.68 4.68 1
2000s 5.75 3.86 9.79 7
2010s 8.24 5.22 10.3 10
2020s 8.06 6.68 9.8 4

Countries ranked near Iceland

  1. 56 Croatia 7.06 compare
  2. 57 Slovakia 6.87 compare
  3. 58 Barbados 6.79 compare
  4. 60 Mauritius 6.56 compare
  5. 61 Mali 6.45 compare
  6. 62 Cyprus 6.12 compare

See the full ranking of 89 places →

More work & labour data for Iceland

All data for Iceland →

Frequently asked questions

What is lu3: combined rate of unemployment and potential labour force in Iceland?
Lu3: combined rate of unemployment and potential labour force in Iceland was 6.68 in 2023, according to International Labour Organization.
What is the highest lu3: combined rate of unemployment and potential labour force recorded in Iceland?
The highest recorded value was 10.3 in 2010.
What is the lowest lu3: combined rate of unemployment and potential labour force recorded in Iceland?
The lowest recorded value was 3.86 in 2007.
How does Iceland rank for lu3: combined rate of unemployment and potential labour force?
Iceland ranks 59th out of 89 countries with data for 2023.
Is lu3: combined rate of unemployment and potential labour force rising or falling in Iceland?
Over the last ten years it is down 30.8%. The long-run trend across the full record is rising.
Where does this Iceland data come from?
The figures come from International Labour Organization, published as part of LU3: Combined rate of unemployment and potential labour force (previous ILO definition - ICLS13) (15+). Statizoid updates them automatically from the source API.

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LU3: Combined rate of unemployment and potential labour force in Iceland. Statizoid, drawing on International Labour Organization. Retrieved 22 September 2026, from https://labour.statizoid.com/stat/lu3-combined-rate-of-unemployment-and-potential-labour-force-previous-ilo-definition/iceland/

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About this data

Indicator
LU3: Combined rate of unemployment and potential labour force (previous ILO definition - ICLS13) (15+)
Source
International Labour Organization
Licence
ILO Terms of Use (attribution required)
Coverage
89 places, 1,503 data points, 1987–2025
Last refreshed

With the aim of promoting international comparability, statistics presented on ILOSTAT are based on standard international definitions wherever feasible and may differ from official national figures. This series is based on the 13th ICLS definitions. For time series comparability, it includes countries that have implemented the 19th ICLS standards, for which data are also available in the Work Statistics -- 19th ICLS (WORK) database. LU3 represents the share of the extended labour force that are in unemployment or the potential labour force. Data disaggregated by level of education are provided on the highest level of education completed, classified according to the International Standard Classification of Education (ISCED). Data may have been regrouped from national classifications, which may not be strictly compatible with ISCED. For more information, refer to the Education and Mismatch Indicators (EMI) database description.