The unemployment rate in Iceland continues to rise and shows no immediate sign of reaching a peak. The official unemployment rate in the country increased to 3.3 percent in November, but was 1.9 percent in October.
At the end of November 6,350 people were registered unemployed, but the Directorate of Labour website puts the figure at 8,461 today. That equates to an extra 260 people each week day of the month.
There are now more men unemployed than women, according to a Ministry of Finance statement. MBL.is reports that there have not been more men unemployed than women since the previous unemployment spike in 2002. In the last month, 71 percent more men were unemployed than the month before, compared with 47 percent more women.
The increase in unemployment was greater in the Reykjavik capital region (62 percent) than elsewhere in Iceland (57 percent). The increase in unemployment among foreign citizens over the last month of 60 percent was roughly the same as the overall figure. Foreign citizens are now 15 percent of the overall unemployed population, meaning their unemployment rate is somewhat higher than among Icelandic citizens. This is not surprising though, the Ministry of Finance statement says; as foreigners have largely been working in the sectors now contracting the fastest.
“The increase in unemployment has been well above what was expected,” the finance ministry statement reads. “It is difficult to forecast the unemployment rate as well as for other economic prospects. It appears that employers are less reluctant to make workers redundant than in earlier downturns. The situation in the financial market is undoubtedly playing a role here. The unemployment rate has never exceeded 7.5 percent in one month since 1980; that happened in January 1994. Such a rate would be equivalent to 12,000 unemployed persons now.”
I bet the circus is still fully manned with corrupt clowns enjoying lamb steaks while taxpayers eat beans and rice. And whatever happened to the 5 to 10% pay cut? Can we just please get new bankers & government to fix the crisis.
Who can afford beans now?
>And whatever happened to the 5 to 10% pay cut?
It was found to be illegal. Of course, if you are a banking exec and want to transfer depositors money to your personal account to “protect” it, then that’s probably alright.
Doe the unemployment rate include any bank or government clowns? Ofcourse not, they must remain in office to ensure they keep all the stolen money they have safe in their foreign bank accounts! You don’t see any of them loosing their homes, and they are still driving their fancy SUV’s! They said f–k the taxpayers, it’s all about me and the other 20 to 30 circus clowns.
Well, there’s also a valid argument for continuity at a time like this. Especially as, even if it’s population are superhumanly bright (and, AFAIK they’re not), with a population base of 300k it’s going to be hard enough to find enough trained and up to speed locals. Note I’m not even talking about talented ones here.
Still, I’m not sure that it’s a good idea to actually double the pay of some of those involved! I mean, would there really be a brain drain from the FME? Who’d want them? Mugabe?
Does anyone know the black-market krona exchage rate, since the banks are closely controlling everything.
@Charlie, ask the man with the suitcase full of euros at Keflavík…
Since the exporters have been leaned on to repatriate all the foreign currency their earning, it’s very hard to guess a “black-market” exchange rate. The ECB is still quoting 290 krónur to the euro, but without any actual trading at that rate. Mere mortals (ie, not the clowns that run the Central Bank of Iceland) will have to wait for the end of the month to even guess.
Some friends that just came back today from a weekend trip and said they were plenty of offers at 250 krona to the euro. So don’t accept any lower than that.
“…plenty of offers at 250 krona to the euro.”
Where, exactly? On the street? At the airport? If that is true, the fact that Icelanders could travel abroad and convert their money there at a rate of 150-180, does not have any bearing. Of course, for small sums, paying for air fares makes no sense, so one could just as well accept a lower price (such as 250) for one’s kronas.