Unemployment rate in Iceland
Iceland: Unemployment rate was 3.6% in 2025. ▲ Rising
Unemployment rate in Iceland, 1991–2025
Source: ILO Modelled Estimates, via World Bank (2026) – processed by Our World in Data. Measured in %.
Analysis
Iceland recorded 3.6% for unemployment rate in 2025.
The figure is up 0.7% on the previous year and down 8.9% over ten years.
Over the whole period, unemployment rate in Iceland peaked at 7.6% in 2010 and was at its lowest, 1.9%, in 2001.
That places Iceland 125th out of 186 countries with data for 2025, putting it in the middle of the range.
The long-run direction has been consistently rising across the 35 years of available data.
Unemployment rate in Iceland, year by year
| Year | % | Change |
|---|---|---|
| 1991 | 2.5% | — |
| 1992 | 4.3% | +69.0% |
| 1993 | 5.3% | +22.1% |
| 1994 | 5.3% | +1.3% |
| 1995 | 5.2% | -2.4% |
| 1996 | 3.6% | -30.7% |
| 1997 | 3.7% | +3.3% |
| 1998 | 3.1% | -17.5% |
| 1999 | 2.2% | -29.0% |
| 2000 | 1.9% | -11.1% |
| 2001 | 1.9% | -3.2% |
| 2002 | 3.0% | +59.4% |
| 2003 | 4.0% | +33.8% |
| 2004 | 4.0% | +0.9% |
| 2005 | 2.5% | -36.8% |
| 2006 | 2.8% | +11.1% |
| 2007 | 2.3% | -20.5% |
| 2008 | 2.9% | +30.9% |
| 2009 | 7.2% | +145.1% |
| 2010 | 7.6% | +4.8% |
| 2011 | 7.0% | -7.1% |
| 2012 | 6.0% | -14.6% |
| 2013 | 5.4% | -10.4% |
| 2014 | 4.9% | -8.9% |
| 2015 | 4.0% | -18.7% |
| 2016 | 3.0% | -25.2% |
| 2017 | 2.7% | -7.9% |
| 2018 | 2.7% | -1.4% |
| 2019 | 3.5% | +29.7% |
| 2020 | 5.5% | +56.2% |
| 2021 | 6.0% | +10.1% |
| 2022 | 3.8% | -37.2% |
| 2023 | 3.5% | -7.2% |
| 2024 | 3.6% | +2.3% |
| 2025 | 3.6% | +0.7% |
Iceland compared with similar countries
- Iceland's 3.6% is below the median for high income countries, which is 5.0%, 72% of the median. (62 countries reporting)
- Iceland's 3.6% is below the median for Europe & Central Asia, which is 5.6%, 65% of the median. (48 countries reporting)
Biggest year-on-year movements
Years where Unemployment rate in Iceland changed far more than this series normally does. A large move can be a real event or a change in how the figure was measured — the source note below says who published it.
| Year | Change | From | To |
|---|---|---|---|
| 2009 | +145.1% | 2.9% | 7.2% |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 1990s | 3.9% | 2.2% | 5.3% | 9 |
| 2000s | 3.3% | 1.9% | 7.2% | 10 |
| 2010s | 4.7% | 2.7% | 7.6% | 10 |
| 2020s | 4.3% | 3.5% | 6.0% | 6 |
Countries ranked near Iceland
More work & labour data for Iceland
- Population - Est. & Proj. — Total Population - Both sexes, annual -0.4964 % change on previous year (2100)
- Population - Est. & Proj. — Total Population - Male, annual growth -0.4501 % change on previous year (2100)
- Population - Est. & Proj. — Total Population - Female, annual growth -0.5492 % change on previous year (2100)
- Population - Est. & Proj. — Rural population, annual growth rate -1.37 % change on previous year (2050)
- Population - Est. & Proj. — Urban population, annual growth rate 0.2312 % change on previous year (2050)
- Population - Est. & Proj. — Urban population 373.77 1000 No (2050)
- Population - Est. & Proj. — Rural population 16.3 1000 No (2050)
- Population - Est. & Proj. — Total Population - Female 169.5 1000 No (2100)
- Population - Est. & Proj. — Total Population - Male 193.08 1000 No (2100)
- Population - Est. & Proj. — Total Population - Both sexes 362.58 1000 No (2100)
Frequently asked questions
- What is unemployment rate in Iceland?
- Unemployment rate in Iceland was 3.6% in 2025, according to ILO Modelled Estimates, via World Bank (2026) – processed by Our World in Data.
- What is the highest unemployment rate recorded in Iceland?
- The highest recorded value was 7.6% in 2010.
- What is the lowest unemployment rate recorded in Iceland?
- The lowest recorded value was 1.9% in 2001.
- How does Iceland rank for unemployment rate?
- Iceland ranks 125th out of 186 countries with data for 2025.
- Is unemployment rate rising or falling in Iceland?
- Over the last ten years it is down 8.9%. The long-run trend across the full record is rising.
- Where does this Iceland data come from?
- The figures come from ILO Modelled Estimates, via World Bank (2026) – processed by Our World in Data, published as part of Unemployment rate. Statizoid updates them automatically from the source API.
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About this data
Share of the labor force without work, but actively looking for a job and available to start soon.