Iceland’s seasonally adjusted unemployment rate eased to 5.0% in June 2026 from 5.6% in May, remaining at its lowest level since December 2025.
The number of unemployed people fell by 1,600 month-on-month to 11,500.
By gender, the unemployment rate for men declined sharply to 3.3% from 6.3% in May, while the rate for women rose to 7.1% from 4.9%.
Youth unemployment, covering job seekers aged 16 to 24, decreased to 12.0% from 13.0% in the previous month.
Meanwhile, the employment rate edged down to 74.4%, with the number of employed people falling by 2,300 to 218,100.
The labor force participation rate also declined to 78.4% from 80.8%.
On a non-seasonally adjusted basis, Iceland’s unemployment rate fell to 3.9% in June from 8.3% in May.