Behind unemployment is people
The main strength of Icelandic society has been high employment levels and low unemployment. This has characterised our success and created trust in the future. However, we now face unusual circumstances where many have lost their jobs in a short period, far more than we are used to.
Job loss is a major shock
To mention a few examples, we can refer to layoffs at Grundartangi, in fishing and industries related to it, the closure of the silicon factory at Bakki near Húsavík, and the fall of Play with its associated consequences for Icelandic tourism. Behind unemployment figures are people of flesh and blood. Job loss can have hugely serious impacts on individuals and families, both economically and socially, and can be a major shock for many. Society as a whole and the government need to show empathy with those now facing these situations and responsibility through countermeasures.
The opportunities are there
Despite the shocks, it is clear that Iceland has numerous strengths and opportunities. If handled correctly, we can create new jobs, build value creation, and ensure that people find jobs where their talents are utilised. We have substantial human resources, energy resources, a strong fishing industry, and tourism, along with healthy food production based on the purity of nature and considered among the best known globally. These are cornerstones we can rely on to build a strong future if matters are handled wisely. Employment for all has been and remains one of the core values of Icelandic society.
Jobs and value creation in focus
Many have pointed out that the government's employment policy seems primarily to revolve around increased taxes on households and businesses. This is neither the right way to strengthen the labour market nor to ensure people have jobs. On the contrary, it can reduce investments and thus cause a reduction in jobs. Therefore, it is important for the government to respond clearly and decisively now. It needs to introduce measures supporting those who have lost their jobs, foster innovation, boost employment in all regions, and create an environment where businesses and individuals can rely on stability and a fair business environment. Framsókn has always emphasised employment and value creation. We have repeatedly stressed collaboration in solving the biggest challenges of our society. However, the government has chosen to go a different way.
Today we need a realistic approach, cooperation among all stakeholders, to change the path of growing unemployment. Today we do not need big words, glossy presentations, or unrealistic promises. We need grounded and realistic politics that, above all, gives people hope that better times are ahead. Such politics are based on responsibility, solidarity, and prioritising people.
This way, we can ensure that Iceland continues to be a society where welfare and low unemployment are cornerstones and the future is built on a solid foundation.
Sigurður Ingi Jóhannsson, leader of Framsókn.
The article first appeared in Morgunblaðið on 4 October 2025.
