Iceland Labor Force Participation
Labor force participation rate SL.TLF.CACT.ZS
Iceland's labor force participation was 74.93% in 2025, ranked 17th globally. This represents a 0.3% decrease from 2024. Data from World Bank, covering 1990–2025.
Overview
Iceland's labor force participation stood at 74.93% in 2025, a decline of +0.23pp from 2024. Based on recent trends, this figure is projected to reach 75.65% by 2026. Iceland ranked 17th globally.
Iceland's labor force participation rate has experienced fluctuations over the past three and a half decades, with a recorded all-time peak of 77.86% in 2000 and a trough of 72.68% in 1990, coinciding with the year of initial available data. The country currently ranks 17th globally with a labor force participation rate of 74.93%. A comparison with peer countries reveals that Iceland lags behind Liberia, which has a slightly higher rate of 76.58%. Since 1990, Iceland's labor force participation has generally trended upward, albeit with a minor dip in the intervening years. The most recent data suggests that while Iceland has made progress in increasing labor force participation, the rate has stagnated over the past few years, failing to reach the peak levels achieved in the early 2000s. A sustained economic recovery and a decrease in unemployment would likely be necessary to propel Iceland's labor force participation rate upward and potentially surpass that of its peer countries.
Data & projection
| Year | Labor Force Participation | YoY change | Rank |
|---|---|---|---|
| 2028* trend | 76.40% | - | - |
| 2027* trend | 76.03% | - | - |
| 2026* trend | 75.65% | - | - |
| 2025 | 74.93% | −0.23pp | #17 |
| 2024 | 75.15% | +0.41pp | #17 |
| 2023 | 74.75% | +0.28pp | #18 |
| 2022 | 74.47% | +1.06pp | #20 |
| 2021 | 73.41% | −0.14pp | #21 |
| 2020 | 73.56% | −2.14pp | #18 |
| 2019 | 75.70% | −0.28pp | #17 |
| 2018 | 75.98% | −0.91pp | #16 |
| 2017 | 76.89% | −0.52pp | #16 |
| 2016 | 77.42% | +0.74pp | #13 |
| 2015 | 76.68% | +0.71pp | #15 |
| 2014 | 75.97% | +1.07pp | #18 |
| 2013 | 74.90% | +0.62pp | #19 |
| 2012 | 74.28% | +0.09pp | #18 |
| 2011 | 74.19% | −0.50pp | #20 |
Detected Pattern
Analysis
Iceland matched the Export Boom Cycle pattern in 2016. Historically, 71% of countries showing this pattern (546 out of 768) saw labor force participation improve within 24 months. View full analysis →
Frequently Asked Questions
Iceland's labor force participation was 74.93% in 2025. Ranked 17th globally. This represents a 0.3% decrease from the previous year.
Iceland's labor force participation peaked at 77.86% in 2000.
The lowest labor force participation in Iceland was 72.68% in 1990.
Iceland ranks 17th globally in labor force participation as of 2025.
The World Bank indicator code is SL.TLF.CACT.ZS. Data sourced from World Bank.
Iceland's labor force participation is projected to reach 75.65% by 2026 based on trend extrapolation.
The labor force participation of Iceland in 2025 was 74.93%. This ranks 17th in the world.
Cite this page
@misc{historysaid_iceland_labor-force-participation,
title = {Iceland Labor Force Participation},
url = {https://historysaid.com/iceland/labor-force-participation/},
publisher = {HistorySaid},
year = {2026}
}