Foreign Labour Is Underutilised In Iceland

Workers’ organisation BHM states that foreign labour is underutilised in Iceland, with the majority working in jobs that are not aligned with their education, reports RÚV.

Over the past 20 years, the labour market has grown by 37 percent, and of that growth, immigrants have accounted for 73 percent.

Figures from the OECD show that 40 percent of university-educated immigrants in Iceland work in jobs where their education is not properly utilised. These figures are higher than in countries Iceland typically compares itself to.

Ingvar Freyr Ingvarsson, economist at BHM, says that Icelandic authorities and the labour market need to do better.

According to Ingvar Freyr, there is high demand for specialised staff, including in primary schools, and therefore more must be done to welcome and support university-educated immigrants.

“It may be that people who come here are not being supported well enough, that they are not being integrated into jobs effectively. It should also be mentioned that the pace has been extremely fast,” says Ingvar Freyr.

He says it is necessary to address this issue with determination. The domestic workforce is ageing, while immigrants coming to Iceland are generally young workers. In the coming years, it will be necessary to attract foreign labour and better utilise the human capital that immigrants bring.

“Especially if we look around us, other nations are dealing with ageing workforces. That tells us that there will be much greater demand for immigrants in the coming years. We will have to compete with other nations,” he adds.

BHM proposes a coordinated immigration and human resources policy, says Ingvar Freyr. “Immigration needs should be linked to the country’s actual staffing needs. This should be part of political party policy.”

He says it is necessary to better support and assist those who come to Iceland to work. The increase in the number of immigrants has put pressure on the country’s infrastructure. According to Ingvar Freyr, it is important to tackle age discrimination in the labour market. There needs to be a focus on retraining and helping people acquire new skills.

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