In the years between 2012-2016, wages in Iceland increased 60%, reports VB.is.
Wage increased has slowed down recently, but they still remain far above the countries Iceland does most trade with, where the increase was 6-8% in the same period
In Sweden wages were stagnant during the period and in Norway they decreased by 10%. All figures come from Landsbankinn and are measured in Euros. According to VB, this development has harmed Iceland’s international competitiveness as labour has become more expensive.
Currently, unemployment in Iceland is very low and according to figures from Iceland Statistics it stood at 3.8% in October. Earlier in the year, the Grapevine reported that labour market participation was at 84.9%, making it the highest in the OECD countries.
Yet, we can’t help but wonder, who are these people whose paycheques have 60% higher figure on them.