Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Get in touch with us nowReducing working hours and a gender pay gap
In 2022, Icelanders worked an average of 35.5 hours per week, which was significantly less than the previous years. Iceland had a trial project from 2015 to 2019 where it reduced weekly working hours from 40 to 35 or 36 hours; after its successful implementation, the change was made permanent in 2021. Furthermore, men spend more time working than women, and the agriculture, forestry, and fishing industry clearly had the highest average working hours.In Iceland, a pay gap between men and women continues to exist. In 2022, women earned nine percent less than men on average. Despite this, Iceland ranks among the most gender equal countries in the world, and the pay gap is explained by Iceland's strong social care system and high wages, giving parents (usually mothers) greater opportunities to stay at home with young children.
The impact of COVID-19
The monthly number of unemployed people in Iceland increased greatly from March to April in 2020 following the outbreak of COVID-19, but remaine relatively stable since may 2021. Moreover, the pandemic has hit different industries in varying ways. Whereas the number of employees fell significantly in the tourism and accommodation and food services industries, it remained stable within wholesale and retail trade. Furthermore, the number of people who sometimes work from home increased slightly since the end of 2019.
