Unemployment among immigrants in Iceland raises concerns for Directorate of Labor CEO

The high unemployment rate among immigrants in Iceland is a growing concern for the CEO of the Directorate of Labor. In July, over 6,700 individuals were unemployed, including approximately 3,800 immigrants. Unnur Sverrisdóttir, the director, highlights that many immigrants come to Iceland on temporary contracts, and finding new employment can often take a significant amount of time.

A recent OECD report has revealed that while the participation rate of immigrants in the labor market is among the highest globally, their unemployment rate has been increasing in recent years. Unnur emphasizes the issue, noting that many immigrants struggle to find jobs that match their qualifications due to limited proficiency in Icelandic. This language barrier contributes to the challenges they face in securing employment.

During economic downturns, Unnur notes, immigrants seem to be the first to lose their jobs and find it more difficult to re-enter the labor market. Larger numbers of foreign workers are employed in temporary roles, particularly in sectors like tourism and construction, which may offer less stability and opportunity for long-term employment security.

Unnur asserts that addressing the needs for enhanced Icelandic language training for immigrants could deter high unemployment rates and lead to better job opportunities that align with their skills and education. She points out that while the system allows immigrants to earn rights for unemployment benefits and other work market assistance, the transient nature of their jobs often complicates their situation in a fluctuating economy.