Labour · Europe & Central Asia · High income
Iceland: the labour market
Labour force is 242,507 (2025), 172nd of 187 in the world and 48th of 49 in Europe & Central Asia. Participation rate is 74.9% (2025), 17th of 187 in the world and 1st of 49 in Europe & Central Asia. Women's participation is 70.0% (2025), 19th of 187 in the world and 2nd of 49 in Europe & Central Asia.
Labour force
Iceland
Participation rate
IcelandEurope & Central AsiaHigh incomeWorld
13 indicators
Labour: Iceland in detail
Latest reported value, world rank and rank within Europe & Central Asia; values around 2000, 2010, 2020; group and world columns are World Bank aggregates.
| Indicator | Latest | World rank | In region | ~2000 | ~2010 | ~2020 | 10-year change | Region | Income group | World | Since 2000 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Labour forceLabour force, total | 242,5072025 | 172/187 | 48/49 | 167,968 | 187,815 | 219,071 | +20%since 2015 | 429m | 734m | 3.7bn | |
| Participation rateLabour force participation, % of 15+ | 74.9%2025 | 17/187 | 1/49 | 77.9% | 74.7% | 73.6% | −1.8 ppsince 2015 | 58.2% | 61.0% | 61.0% | |
| Women's participationFemale labour force participation, % of women 15+ | 70.0%2025 | 19/187 | 2/49 | 73.5% | 70.5% | 69.3% | −2.8 ppsince 2015 | 51.1% | 54.3% | 48.9% | |
| Employment rateEmployment to population ratio, 15+ (ILO) | 72.2%2025 | 17/187 | 1/49 | 76.4% | 69.0% | 69.5% | −1.4 ppsince 2015 | 55.1% | 58.3% | 58.1% | |
| UnemploymentUnemployment, % of labour force (ILO) | 3.6%2025 | 126/187 | 41/49 | 1.9% | 7.6% | 5.5% | −0.4 ppsince 2015 | 5.4% | 4.4% | 4.8% | |
| Female unemploymentFemale unemployment, % of female labour force (ILO) | 3.4%2025 | 144/187 | 42/49 | 2.6% | 6.7% | 5.3% | −0.7 ppsince 2015 | 5.7% | 4.6% | 4.9% | |
| Youth unemploymentYouth unemployment, ages 15–24 (ILO) | 8.7%2025 | 133/187 | 44/49 | 4.2% | 15.9% | 9.9% | +0.1 ppsince 2015 | 14.0% | 11.5% | 13.4% | |
| Youth NEET rateYouth not in education, employment or training, % | 4.0%2025 | 168/170 | 45/46 | 3.5% | 7.9% | 6.7% | −0.8 ppsince 2015 | 11.4% | 10.6% | — | |
| Wage workersWage and salaried workers, % of total employment | 86.7%2025 | 36/187 | 19/49 | 82.8% | 83.6% | 84.2% | +3.4 ppsince 2015 | 83.3% | 88.9% | 53.6% | |
| Vulnerable employmentVulnerable employment, % of total employment (ILO) | 8.4%2025 | 159/187 | 35/49 | 11.8% | 11.4% | 11.1% | −3.5 ppsince 2015 | 12.9% | 8.0% | 42.4% | |
| Jobs in agricultureEmployment in agriculture, % of total employment | 3.6%2025 | 142/187 | 29/49 | 8.7% | 5.6% | 4.0% | −0.6 ppsince 2015 | 6.7% | 2.9% | 25.8% | |
| Jobs in industryEmployment in industry, % of total employment | 18.2%2025 | 105/187 | 35/49 | 22.1% | 18.4% | 17.9% | +0.4 ppsince 2015 | 23.7% | 22.2% | 23.7% | |
| Jobs in servicesEmployment in services, % of total employment | 78.1%2025 | 29/187 | 12/49 | 69.2% | 76.0% | 78.0% | +0.2 ppsince 2015 | 69.7% | 74.9% | 50.6% |
Source: World Bank, World Development Indicators (CC BY 4.0)“·” — no value reported within two years of that date. World rank counts countries with a recent value.
Better than ten years ago
- Unemployment−0.4 pp3.6% in 2025
- Female unemployment−0.7 pp3.4% in 2025
- Youth NEET rate−0.8 pp4.0% in 2025
- Wage workers+3.4 pp86.7% in 2025
Worse than ten years ago
- Women's participation−2.8 pp70.0% in 2025
- Employment rate−1.4 pp72.2% in 2025
- Youth unemployment+0.1 pp8.7% in 2025
Only indicators where higher or lower is clearly better are rated (for example, unemployment down is better, life expectancy up is better).
neighbours
Iceland and its neighbours
Countries sharing a land border with Iceland. Latest values since 2005; the highest in each row is marked.
| Indicator | Iceland | Greenland | Faroe Islands |
|---|---|---|---|
| Labour force | 242,5072025 | — | — |
| Participation rate | 74.9%2025 | — | — |
| Women's participation | 70.0%2025 | — | — |
| Employment rate | 72.2%2025 | — | — |
| Unemployment | 3.6%2025 | — | — |
| Female unemployment | 3.4%2025 | — | — |
| Youth unemployment | 8.7%2025 | — | — |
| Youth NEET rate | 4.0%2025 | — | — |
| Wage workers | 86.7%2025 | — | — |