1.13 Unemployment

Indicator 1.13 - Unemployment

Visir_1_13Here you can find information about unemployment rate in East Iceland compared to the capital area and national average.


Iceland and East Iceland unemployment rate

Unemployment rateFigure 1.  Average unemployment rate in East Iceland, Capital area, other area and in Iceland total 2000 -2017.

Unemployment rate East and Iceland as a whole

Figure 2. Average unemployment by gender in East Iceland and total Iceland 2000 - 2017.


Updated: May, 23rd 2018
Source: Directorate of labor - Atvinnuleysistölur í excelskjölum. Retrieved May 22 2018 from


Metrics, Targets and Monitoring Protocol

What is measured?

Unemployment rate in East Iceland and nationally. (Project effect: induced).

Monitoring Protocol

The Directorate of Labor collects this information.


Unemployment rate in East Iceland less than or equal to national rate.

Possible countermeasures

Not applicable, monitoring only.

Changes of indicator

In  fourth phase of the initiative the numbers of the sustainability indicators were changed.  This indicator was originally number 12.2 and is referenced as 12.2 in early documents of the project.

Rationale for Indicator Selection

Long term unemployment can create various social and economic problems. Therefore, communities try to avoid long periods with high unemployment rates since such conditions are not sustainable.

The new jobs created by the projects will change the employment market in East Iceland and could influence unemployment rates in the area. However, it is not obvious what the effects will be since more jobs will not automatically lead to a lower unemployment rate. In the past, a stagnant job market in East Iceland has resulted in people moving away to areas where there were more jobs, rather than staying unemployed.

Also, a gender imbalance in the types of jobs created by the projects (both direct and indirect jobs) could result in an increase in unemployment rates.


The following graph shows that the unemployment rate in East Iceland has been less than average compared to the national level since 1992.  Conversely, before that time, the unemployment rate was higher in East Iceland.