Unemployment on the Rise

Although Iceland has one of the lowest unemployment rates in the world, the Directorate of Labor fears rising unemployment. The situation on the Icelandic labor market is expected to change next fall.



The Icelandic Confedaration of Labor (ASÍ) and the Confederation of Icelandic Employees (SÍ) report that the fear of rising unemployment is more than realistic. The most critical situation is in the fishing sector. Over 500 employees are in danger of losing their jobs soon and more than 250 are already unemployed.

The situation in the capital area around Reykjavik is quite different. There are still many institutions looking for employees. There are only 835 persons officially registered as unemployed in Reykjavík, fewer than the year before. Local employment agencies report the rising rates outside the capital area. According to statistics the rate is expected to rise between 0.8% and 1.1%.

Unemployment rates could reach the top in the beginning of fall 2008.