Government-sanctioned budget cuts have forced the Directorate of Labour to let go of some of their employees and cut back on services to the unemployed.
“We are struggling with a demand to reduce operational costs by about 100 million [ISK],” Gissur Pétursson, the director of the Directorate, told RÚV. “There is no other choice. We cannot conduct interviews and counseling like we would otherwise want to.”
20 employees have already been let go, operating hours have been shortened, and the service office has been closed. Gissur could not comment on the exact number of employees who will be let go this time around.
Parliament has already shortened the long-term unemployment limit from three years to 2.5. Minister of Social Affairs Eygló Harðardóttir told reporters that part of the reasoning behind the cutback was that unemployment is very low and has been on the decline.
According to figures from the Directorate of Labour, national unemployment is currently at 3.1%, and has been declining since March.