FX.co ★ Iceland Jobless Rate Climbs to 2021-Highs at 5.7%

In August 2025, Iceland experienced a notable rise in its seasonally adjusted unemployment rate, climbing to 5.7% from a revised 4.1% in July. This marked the highest unemployment figure since June 2021. The number of unemployed individuals increased by 4,200, reaching a total of 13,700, with 9,500 men and 4,100 women. The youth unemployment rate, reflecting job-seekers aged 16 to 24, saw a significant jump to 14% from 5.9% in the preceding month. Simultaneously, employment figures saw a modest rise of 1,600, bringing the total employed population to 225,600, while the labor force expanded by 5,800 to reach 239,300.