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Iceland’s seasonally adjusted unemployment rate climbed to 4% in July 2025 from a downwardly revised 2.7% in the previous month. This marked the highest jobless rate since February 2025, as the number of unemployed persons increased by 3,200 month-on-month to 9,500. Of these, 5,700 were unemployed men and 3,800 were women. The youth unemployment rate, which measures job-seekers between 16 and 24 years old, increased to 5.7% from 5% in June. Meanwhile, employment decreased by 3,300 from the previous month, totaling 226,500. The labor force participation rate edged down to 81.4% in July 2025 from 81.6% in the previous month.