Iceland’s seasonally adjusted unemployment rate declined to 3.7% in September 2025 from an over four-year high of 5.7% in August. The number of unemployed persons declined by 4,800 from a month earlier to 8,800. By gender, the jobless rate for men dropped to 4.0% from 7.5% in August, while that for women edged down to 3.3% from 3.7%. The youth unemployment rate, which measures job-seekers between 16 and 24 years old, fell to 9.9% from an over two-year high of 14.0% in the previous month. Meanwhile, the employment rate increased to 78.7% from 77.6%, with the number of employed persons rising by 1,300 to 238,500. The labor force participation rate decreased to 81.8% from 82.2%. Not seasonally adjusted, the jobless rate dropped to 3.2% in September from 5.3% in August.