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Iceland’s seasonally adjusted unemployment rate eased to 3.1% in May 2025 from 3.3% in the previous month, marking the lowest reading since November 2024. The downward trend was mainly due to the decrease in the number of unemployed individuals by 400 month-on-month to 7,300. Of these, 4,000 were unemployed men and 3,300 were women. The youth unemployment rate, which measures job seekers between 16-24 years old, fell to 4.7% from 6.9% in April. Meanwhile, employment decreased by 3,700 to 228,900 in May. The labor force participation rate edged down to 81.1% in May from 81.4% in the previous month.