Iceland’s seasonally adjusted unemployment rate rose to 6.3% in July 2026 from 5.0% in June, reaching its highest level in four months. The number of unemployed people increased by 3,000 month-on-month to 14,500. By gender, the unemployment rate for men rose to 5.7% from 3.4% in June, while the rate for women remained unchanged to 7.0%. Youth unemployment, covering job seekers aged 16 to 24, fell sharply to 6.4% from 12.0% in the previous month. Meanwhile, the employment rate edged down to 73.8%, with the number of employed people falling by 600 to 216,700. The labor force participation rate also inched up to 78.7% from 78.6%. On a non-seasonally adjusted basis, Iceland’s unemployment rate fell to 5.5% in July from 3.9% in June.