Iceland’s seasonally adjusted unemployment rate rose to 6.8% in August 2026, the highest level since February, from an upwardly revised 6.6% in July. The number of unemployed people increased by 0.7 thousand month-on-month to 15.9 thousand, comprising 10.9 thousand men and 5.0 thousand women. Youth unemployment among 16- to 24-year-olds climbed to 14.2% from 6.7%, its highest level since May. At the same time, the employment rate edged up to 73.7% from 73.5%, with employment rising by 1.2 thousand to 217.8 thousand. Labor-force participation increased to 79.0% from 78.7%. On a non-seasonally adjusted basis, unemployment rose to 6.0% from 5.5% in July.