The registered rate of unemployment in Iceland was 1.9 percent in October – or 3,106 people. This was an increase of 877 people on the September rate, according to MBL.is. At the same time last year there was 0.8 percent unemployment, or 1,315 people.
The Icelandic Directorate of Labour states that unemployment traditionally increases between October and November each year. However, the rate in 2007 was 0.8 percent in both months. Unemployment at the end of October had increased from the end of September by 1,447 people, and by 2,526 from the same time last year.
According to the Directorate of Labour, it is difficult to predict future unemployment due to the rapid contraction underway in the economy right now; but that it will likely be in the region of 3.3 to 3.8 percent by the end of November.
I assume the bankers and Mr. Haarde are some of the unemployed?
This is a sad story. Many of those folks didn’t do anything wrong, and still fell vicitim to the failed economic policy of Haarde and his gang. Just like the Icesave customers. A tragedy.
This rate of unemployment is not real, 7000 polish people went back to poland in the las 3 month.
Of course for the statistics is perfect!! also does not say anything about all these people who has to change contract from 100% to 75% o even 50%.
Exactly Martin…
Even if, this was a release for Icelanders, also a lot of Portuguese and Spanish left recently. Not talking about contractors with their own machinery.
Also, Icelanders are leaving bit by bit, back to their second home, Skåne län and Copenhagen. Because they don’t agree with Iceland policies and simply because 50% job doesn’t pay the loans any more!
Everyone wants to blame Geir Haarde and the government for this mess, and although I agree this guy is incompetent and is in way over his head, your banking system fell into the perfect storm from which it couldn’t possibly recover. The biggest mistake was not less regulation, greed, nor capitilism; the biggest mistake was clinging to the Kronur while bank Liabilities rose 8 times that of GDP. A natural run on banks from depositors was inevitable and was forewarned way in advance. The Coup de Grace came with the basic lack of communication and diplomatic skills required by Haarde and the Financial Minister, heck throw in the entire financial dept of Iceland. These financial government amateurs thought that circling the monetary wagons and hoping it will go away was all that was necessary to calm the turmoil, and then acted surprised when creditors and depositors started beating down the doors for thier monies. That is how the world works, I feel bad for your people but, Iceland was living in a fairy tale world flowing with Champaigne and Cavier dreams. You woke up with the restaurant bill and a hangover, and now it will take decades for your socialist system to recover half of the standard of living you experienced from the last five.
People and Institutions in effected countries like Iceland and elsewhere could look to having available the type of food generally used in famine relief and the third world. The simple unprocessed food is much cheaper than whats in the grocery store and would free up money for other purposes. At least the instances of people and food pantries running out of food would be lessened by the dollar per day per person or so this food costs.
MICHAEL STONE
I believe the situation is not that extreme yet…
But actually, Iceland could take the opportunity to reform their politics and take back more POWER to the PEOPLE. I noticed since this last 15 years people have been loosing slowly their free will over political power, which this one, has been hooked to economic pressures.
The island has all the potential to be independent energetically. The little amount of people living in the island could enjoy a free energy. Yet this energy coming from under Icelanders feet has to be paid. Probably less than other country, but still I believe, it will save enough money to invest or buy in others dependant resources.
This crisis is worsened by the way the financial system works. Currently the financial markets operate on principles that has positive feedback (eg. credit default swaps): If things starts to go bad, the financial systems adds to this and accelerates the fall. See:
http://en.wikipedia.org/wiki/Positive_feedback
And:
http://www.reuters.com/article/newsOne/idUSN1837154020080918?sp=true
MICHAEL:
I agree, its very important to stop buying processed, junk food and get back to home cooking. Its obviously cheaper but its also healthier and the ingredients keeps better.