At least nine out of every ten people to have lost their jobs in Iceland worked in the private sector. At the same time as the number of private sector jobs has decreased, the number of public sector jobs has actually gone up.
The figures were released by the Iceland Chamber of Commerce and show a great inequality between the public and private sectors, according to Frosti Olafsson, the organisation’s second in command.
When asked in parliament, the Icelandic Finance Minister, Steingrimur J. Sigfusson said that 300 new public sector jobs have been created between 2008 and 2009. At the same time, over 10,000 people lost their jobs. Olafsson said this shows that the rising unemployment caused by the financial crisis has almost only attacked private employers.
Iceland’s public spending has increased rapidly over recent years and is the highest of any OECD country, Olafsson told Visir.is. Thirty years ago it was among the lowest. He added that public employees’ wages are now above average for the nation, along with higher job security, much better pension plans and shorter working hours.
The comparison of the economic downturn with 30 years ago may not be fair. Jobs created between 2008 and 2009 is again lost specially those who are working with the health sector. Lots have changed with the collapsed of the banking system. Reorganization also cost money aggravated by the present condition of investigation in trying to recover something, most have lost jobs and the treasury is almost empty. The Dutch and the British campaign of blocking all loans and assistance to Iceland make it harder. Income generating establishment is barely survival. Anyway, this is a slow but sure step to recovery and hopefully it will be sooner than later. And one thing more is that we have all learned fron this experience and restore the services and benefits later just like in the good old times.
ICELAND HAS TO LOOK TO EAST ASIA FOR THE REVIVAL OF JOBS IN MANUFACTURING YOU HAS TO ADMIT THE HARD WORK ETHNIC OF ASIAN PEOPLE STOP YHE NORDIC MODEL IT DO NOT WORK TO CREATE JOBS LOOK EAST ASIAN MODEL BELIEVE ME STUDY THEIR HISTORY
the private sector is going down, the public increasing, and who is working for the increasing public sector? The private because they have to pay the taxes for the public workers that these getting the salaries? It will become a nightmare…Go to the f.. continent and see the results of 30 or 40 years misseconomy and you will know where you end up….
Interesting topic–poorly written and a very native article. The author seems quite positive about the increase/stability of jobs in the public sector and the loss of jobs in the private sector. Errr, who is supposed to pay for the increase in public spending and how long can the Icelandic public sector survive with an amputated private sector??? It would have been very interesting to hear what jobs the public sector has created that could create value for Iceland rather than eating up resources on useless bureaucracy and administration.
Public sector is productive. It will not make icelanders wealthy, but will keep them alive.
“At the same time as the number of private sector jobs has decreased, the number of public sector jobs has actually gone up”
That’s the inevitable trend when you have a socialist government: the nationalisation of the workforce.
>At the same time as the number of private sector jobs has decreased, the number of public sector jobs has actually gone up.
The socialists think there is some pot of gold some where that will pay for every thing.
It all comes from the so called private sector. Now this use less Red Green governent is doing its best to strangle entrepreneurs just through more tax ideas that are structured to crush any new ventures before they even start.
Even Alda ( a sloppy thinking socialist at heart ) has seen the writing on this wall, it’s that obvious..
http://icelandweatherreport.com/2009/12/new-iceland-ur-doin-it-wrong.html
It makes me laugh in times of economic struggle,public sector workers get targated in the media because they still have jobs.I live in ireland and we too are feeling the economic strain.I have taken two paycuts but our government call them levys.I have a pension levy on top of that as well.When irelands economy boomed my friends in the private sector ie:construction,manufacturing etc.Were on double my salary.We even for the first time ever had eu citizens flocking to ireland for jobs.Then the banks crashed jobs were lost.And of course everybody wanted public sector workers blood.I chose the public sector they didnt.They laughed at my wage,i didnt.Now i still have my job and its because i fought hard to get it and i make no apologies for it.I wish iceland the very best in the future and its graceful people.
The IMF money is being used to keep public sector jobs, this is how direct support for your economy works in practice. Whether this is a good way to run economy is another matter, the private sector will have to pay it back, as Fishy point out.
mark flynn is also fair to point out that public sector employees were paid far less in the good times.
But you have remember that that the public always pay your wages and the reason you are paid lell is becuase you are the lazy, poorly skilled dregs who cannot make it the public sector at any time. Public sector jobs will be cut because the are a drain on society. In the UK, not only are public sector jobs more stable, but the wages (and especially pensions) have kept up and exceeded the private sector.