Iceland Unemployment Rate
Unemployment as % of total labor force SL.UEM.TOTL.ZS
Iceland's unemployment rate was 3.63% in 2025, ranked 61st globally. This represents a 7.7% increase from 2024. Data from World Bank, covering 1980–2025.
Overview
Iceland's unemployment rate stood at 3.63% in 2025, a rise of +0.26pp from 2024. The IMF projects 3.93% by 2025. Iceland ranked 61st globally.
Iceland's unemployment rate has fluctuated significantly over the past four decades, reflecting the country's heavily service-oriented economy and vulnerability to global economic shifts. The unemployment rate reached an all-time peak of 7.56% in 2010, a year marked by the global financial crisis that severely impacted Iceland's economy. Conversely, the trough of 0.31% in 1980 highlights the country's economic resilience and low unemployment during the early stages of its economic expansion. As of 2025, Iceland's unemployment rate stands at 3.62%, ranking it 61st globally. This value is comparable to that of Cameroon, which has a similar unemployment rate of 3.60%. Germany, on the other hand, has a slightly higher unemployment rate of 3.71%. The trajectory of Iceland's unemployment rate is expected to remain stable in the short term, but a significant shift in the country's economic policies or external economic factors could alter this trend.
Data & projection
| Year | Unemployment Rate | YoY change | Rank |
|---|---|---|---|
| 2030* IMF | 4.00% | - | - |
| 2029* IMF | 4.00% | - | - |
| 2028* IMF | 3.98% | - | - |
| 2027* IMF | 3.98% | - | - |
| 2026* IMF | 3.97% | - | - |
| 2025* IMF | 3.93% | - | - |
| 2025 | 3.63% | +0.26pp | #61 |
| 2024 | 3.60% | +0.23pp | #62 |
| 2023 | 3.52% | −0.07pp | #61 |
| 2022 | 3.79% | −2.05pp | #61 |
| 2021 | 6.03% | −0.24pp | #95 |
| 2020 | 5.48% | +1.58pp | #77 |
| 2019 | 3.51% | +0.37pp | #51 |
| 2018 | 2.70% | −0.60pp | #29 |
| 2017 | 2.74% | −0.70pp | #27 |
| 2016 | 2.98% | −1.61pp | #31 |
| 2015 | 3.98% | −1.53pp | #50 |
| 2014 | 4.90% | −1.20pp | #70 |
| 2013 | 5.38% | −1.47pp | #80 |
| 2012 | 6.00% | −1.95pp | #89 |
| 2011 | 7.03% | −1.29pp | #97 |
Detected Pattern
Analysis
Iceland matched the Export Boom Cycle pattern in 2016. Historically, 71% of countries showing this pattern (546 out of 768) saw unemployment rate improve within 24 months. View full analysis →
Frequently Asked Questions
Iceland's unemployment rate was 3.63% in 2025. Ranked 61st globally. This represents a 7.7% increase from the previous year.
Iceland's unemployment rate peaked at 7.56% in 2010.
The lowest unemployment rate in Iceland was 0.31% in 1980.
Iceland ranks 61st globally in unemployment rate as of 2025.
The World Bank indicator code is SL.UEM.TOTL.ZS. Data sourced from World Bank.
Iceland's unemployment rate is projected to reach 3.93% by 2025 based on IMF projection.
The unemployment rate of Iceland in 2025 was 3.63%. This ranks 61st in the world.
Cite this page
@misc{historysaid_iceland_unemployment-rate,
title = {Iceland Unemployment Rate},
url = {https://historysaid.com/iceland/unemployment-rate/},
publisher = {HistorySaid},
year = {2026}
}