FX.co ★ Iceland Unemployment Rate Drops to 3.1% in May

In May 2025, Iceland’s seasonally adjusted unemployment rate decreased to 3.1% from 3.3% in April, reaching its lowest level since November 2024. This reduction primarily resulted from a monthly decrease of 400 unemployed individuals, bringing the total to 7,300. Breaking it down further, 4,000 unemployed were men and 3,300 were women. The youth unemployment rate, which tracks job seekers aged 16-24, also experienced a decline, dropping to 4.7% from April's 6.9%. Conversely, total employment saw a reduction of 3,700, settling at 228,900 for the month. Meanwhile, the labor force participation rate slightly decreased to 81.1% from 81.4% in April.