FX.co ★ Iceland Unemployment Rate Highest Since 2021

Iceland's seasonally adjusted unemployment rate rose to 5.5% in February 2025, up from a revised 4.9% in January. This represents the highest unemployment rate recorded since October 2021. The increase is attributed to a monthly rise in the number of unemployed individuals by 1,500, bringing the total to 12,900. Among these individuals, 5,800 were men, while 7,100 were women. The unemployment rate among youth, defined as job-seekers aged 16 to 24, surged to 12.6% from January's 9.6%. Concurrently, employment saw a decline of 1,000 compared to the previous month, amounting to a total of 220,800 employed persons. Additionally, the labor force participation rate decreased to 80.4% in February 2025 from 81.4% in January.