The unemployment rate in Iceland measured 9.1 percent in May, which was significantly down from its April level of 10.4 percent, according to new figures from Vinnumálastofnun (the Directorate of Labour).
The Directorate predicts a further drop in the number of jobseekers this month - in large part due to the government's Hefjum störf scheme that financially supports the creation of new jobs. The June unemployment rate will be 7.3 to 7.8 percent, Vinnumálastofnun forecasts.
Unemployment has spiked to unprecedented levels during the pandemic, peaking at 11.6 percent in January. For comparison, it peaked at 9.3 percent during the financial crisis, in February 2010.