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Iceland
- Recruitment landscape
- Economic indicators
- Labor market
- Working life
Your global agency guide to...
Iceland
Iceland, with a GDP of $31 billion, ranks 105th globally. Key industries in Iceland include tourism, fish processing, and aluminum smelting. The nation boasts a stable working population and a low unemployment rate of 3.6%, reflecting a strong labor market. There are relatively few recruitment agencies, indicating room for growth in this sector.
Iceland'S
AGENCY LANDSCAPE
500
Agencies operating in Iceland
A high number of agencies indicates a mature recruitment industry, marked by strong talent demand, established labor laws and economic stability.
15-18%
Typical fee range
Countries with higher fees imply finding talent is harder to find whilst lower fees indicate a high-volume, commoditized market.
Iceland'S
FEATURED AGENCIES
Manpower Group
Hays
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Iceland'S
GROSS DOMESTIC PRODUCT (GDP) RATING
105
WORLD RANKED
Iceland ranks 105th in the world by current economic output
$31B
NOMINAL GDP (US$)
GDP reflects the overall size and economic strength of the country’s economy.
62
EMEA RANKED
Iceland is the 62nd biggest GDP in EMEA out of 109 countries in the region
GDP GROWTH (%)
The above chart compares how Iceland's GDP has grown, compared to the rest of the world and the EMEA region in the last 7 years.
Positive growth indicates an expanding economy, while negative growth or recession signifies economic contraction. Strong growth can encourage hiring, but slower growth might lead to freezes or layoffs, influencing talent sourcing as businesses adapt to changing market conditions and demands.
Iceland'S
CURRENCY AND CODE
Ikr
Country currency
ISL
Country ISO code
Iceland'S
INFLATION RATE
5.6%
CURRENT RATE
▼3.1% REDUCTION
Inflation represents the rate at which prices rise and purchasing power diminishes. High inflation may prompt employees to seek higher wages, potentially impacting company profitability. This situation could lead to budget constraints or hiring freezes, which might influence talent availability and sourcing strategies.
Iceland'S
COST OF LIVING
COST OF LIVING INDEX EXPLAINED
The cost of living has a direct impact on salary expectations and the competitiveness of compensation packages. It can influence the appeal of certain locations-while high-cost areas may attract highly skilled professionals looking for higher salaries, lower-cost areas can appeal to companies looking to minimize salary expenses or candidates seeking a better work-life balance.
Iceland'S
LABOUR STATISTICS
376K
POPULATION
With a population of 376,248, Iceland is a small sized country by global standards. Iceland's youth population is close to the world average, suggesting a consistent influx of new workers, but may not see any significant growth. The working population in Iceland is close to the world average, suggesting a stable labor market that can adequately meet the economy's demands. Iceland's elderly population is just above the world average, suggesting a growing dependency ratio, which may strain the labor market.
Iceland'S
RELIGION
Religion
In religiously diverse countries, a broad sourcing and engagement approach whilst appealing to inclusive practices resonates with this candidate market. In contrast, in a homogeneous religious environment, understanding dominant cultural norms is often more important when engaging with talent.
Iceland'S
UNEMPLOYMENT RATE
3.6%
CURRENT PERCENTAGE
▼0.23% REDUCTION
Iceland's unemployment rate is healthy, indicating a well functioning labor market with good job opportunities for most people. Between 2022 and 2023, there was a small decrease in unemployment, suggesting continued economic stability with a slight improvement in job availability
Iceland'S
TOP PERFORMING INDUSTRIES
Top industries
Tourism
Aluminum smelting
Fish processing
Iceland'S
GENDER DEMOGRAPHICS
RATIO OF MALES TO FEMALES (BY AGE)
LABOUR PARTICIPATION BY GENDER (%)
79
/
70
Male | Female
In Iceland there is a low gap in participation rates between males and females, indicating a relatively balanced workforce particpation often reflective of strong gender equality policies or cultural norms supportive of equal gender parity.
Iceland'S
WORKING LIFE
$87K
Average gross annual wage (US$)
This figure represents yearly income before taxes. Higher wage countries are above $50,000 USD. Attracting talent in lower-wage markets can be cost-effective; however, offering above-average compensation may be required for in-demand skills.
$7.3K
Average gross monthly wage (US$)
This figure represents monthly income before taxes. Higher-wage countries typically exceed $4,000 USD per month. Attracting talent in lower-wage markets can be cost-effective; however, offering above-average monthly compensation may be necessary for in-demand skills.
Iceland'S
WORKING LIFE
16DAYS
Minimum annual holidays
Minimum annual holidays reflect mandated leave. Hiring in countries with high allowances (over 25 days) will require emphasizing work-life balance when recruiting. In countries with fewer holidays (under 15 days), offering additional leave can enhance recruitment and set the organization apart.
40HRS
Average working full time week
Standard work hours are 8 hours/day, 40/week. Overtime is paid beyond these hours: 0.875% of the hourly rate for office, 1.0385% for home workers, up to 162.5 hours/month. Managers in Iceland are exempt from mandatory overtime pay.
Iceland'S
TOP BENEFITS
6MONTHS
Maternity leave
6 months paid maternity/paternity leave, transferable between parents, 80% salary covered up to ISK 600k. Optional 3 months unpaid. Up to 13 weeks unpaid parental leave for child care.
24DAYS
Sick leave
Employees get 2 days of sick leave monthly (24/year), with the first 2 days fully paid by the employer. Subsequent sick leave terms are determined by the employee's chosen Trade Union.
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