Unemployment to Begin Dropping Next Year - The Reykjavik Grapevine

Unemployment to Begin Dropping Next Year

Published November 5, 2010

Unemployment will reach its highest point in the beginning of next year, and then begin to drop a few months later, according to the latest quarterly report from the Central Bank.
Figures from the Directorate of Labour show that 13,502 of Iceland’s 317,414 people are unemployed. This figure is expected to climb slightly, reaching its peak around January or February of 2011, and then begin to decline around June of the same year.
Further predictions point to unemployment dropping as low as 3% by 2013. These projections match those made by the International Monetary Fund earlier this year.
By the same token, inflation is expect to continue its steep decline next year towards its target of 2.5%, finishing the year at about 3.3%.
In related data, the report says that the building of an aluminium smelter in Helguvík will not begin before 2012. The building of the smelter has often been touted as an important vitamin shot for Iceland’s labor force.

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