Almost nothing

Iceland is in a unique position. The participation in the workforce has rarely been as high as it is now. In fact, unemployment has not been this low since 2008 and could even drop to one to two percent this summer as jobs in the tourism sector increase.

In total, about 15,000 new jobs have been created in Iceland since 2013. Jobs in the tourism sector contribute significantly, as according to Statistics Iceland's measurements, 7,500 new jobs have been created in this sector over the last five years. According to the Social Indicators 2015, alongside the increase in jobs, the number of unemployed people has decreased. In 2014, there were 9,300 job seekers compared to 13,700 in 2010 when the effects of the economic crash began to be felt fully. As a sign that we have turned a corner, long-term unemployment is decreasing rapidly. Between the years 2013 and 2014, the number of men who had been looking for work for twelve months or longer halved, from 1.2 percent to 0.6 percent. The proportion of women decreased from 1.0 percent to 0.7 percent.

Job opportunities are increasing and the variety of jobs is growing. The lack of jobs is not our main concern today, but rather that there aren't enough people to fill them. In fact, the situation is such that for most people who want and are able to work, a job is available.

The stability that has been achieved creates jobs. However, the figures mentioned above are neither self-evident nor spontaneous. During this parliamentary term, the government has focused on strengthening the vitality of society and creating conditions for value creation, for instance, through tax reductions and lower social security contributions, as well as increased support for innovation. With balance in public finances, a responsible plan to lift capital controls, and responsible economic management, increased stability has been established in Iceland. This stability creates conditions for companies to increase investments, which in turn creates more jobs.

The fundamental premise of a welfare society is employment. We want people to be able to choose diverse paths in life and have the opportunity to pursue the jobs they prefer. It is essential that the government is always aware of the necessity of supporting a diverse and growing economy. Things are going well now, and therefore it is important to maintain focus. The policy is to continually strive forward.

Þórunn Egilsdóttir The article was published in Fréttablaðið on 30 March 2016.