Employees
15. Nov 2024
29,950 employees in October — up 1.6% year-on-year
Employee numbers are growing, but the growth has slowed down over the past year, as seen in the trend after adjusting for seasonal variations and other random changes. In October, there were 29,950 employees in the Faroe Islands. This is 470 people, or 1.6%, more than in October last year.
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Equal growth for both sexes
In October, there were about 15,300 male and 14,650 female employees. This represents a year-on-year increase of 250 males (1.6%) and 220 females (1.5%).
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More than half aged 40 or above
The 30-39 age group led the labour force in October, comprising more than 20% of employees. About 54% of all employees in October were aged 40 or above.
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Two-thirds reside in Eysturoy or Suðurstreymoy
The map below shows employee distribution by region. The distribution is fairly steady over time. About two thirds of all employees reside in Eysturoy or Suðurstreymoy (the capital region).
More regional statistics on employment are found here: Norðoya region, Eysturoyar region, Norðstreymoyar region, Suðurstreymoyar region, Vága region, Sandoyar region, Suðuroyar region
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One-third of employees without long-term residency are Asians
To qualify as a long-term resident, one must have lived half of one's life or 7 out of 10 consecutive years in the Faroe Islands once in one's life. The graph below, outlining the trend in the number of employees by residency status (with or without long-term residency), shows that half of those without long-term residency are still from Europe (especially northern and eastern Europe). However, the proportion of employees with Asian citizenships has grown the most in recent years and now makes up a third of the total.
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The table below shows the number of employees without long-term residency divided into continents by nationality. The number of employees without long-term residency was just over 2,000 in October, which is about the same as last year. The distribution has, however, changed slightly, as the number of employees from Eastern Europe has decreased, while there are now more employees from Asia and other parts of the world compared to last year.
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About the employee statistics
Statistics Faroe Islands’ employee statistics include persons aged 13 or over who receive wages taxed at source (known as A-income in the Faroes) in the registered month, corresponding to at least 4 hours per month through the pay-as-you-earn (PAYE) tax system.
Statistics on employees and jobs follow the guidelines in the International Labor Organization (ILO) manuals on employees and jobs under the United Nations. The ILO defines an employee as a person of working age who has been employed by an employer for at least a short period and has produced goods or provided services for a wage. This includes a) employed persons who have worked at least 1 hour during the period (typically set to 1 week) and b) employed persons who are temporarily out of work (due to e.g. sick leave, parental leave or time off in lieu).
The source of employee statistics is monthly A-income through the PAYE tax system. In accordance with the international standard of at least 1 hour per week, the monthly wage threshold is calculated as 4 hours of wages per employee, since there are about four weeks in a month. The hourly wage is set as minimum wage + holiday pay as per the agreement between the Faroese Labour Union and the Faroese Employers' Union. This means that if the monthly wage is below the limit, the person is not considered an employee that month. According to the Faroese Work and Safety Inspectorate, 13 is set as the lower age limit in the statistics as children younger than 13 cannot be employed.
Updates to employee statistics
In the first half of 2024 the employee statistics have been updated and revised. This has brought about a slight increase in the total number of employees. On average, the number of employees is now 500-1,500 higher each month, for various reasons. Primarily because the new statistics cover a wider age range. The previous figures covered ages 16-74, but now anyone aged 13 or over is included. Other changes include a lower wage threshold value, the addition of more parental leave registrations and the fact that certain payments through the PAYE tax system, previously not considered wages, are now correctly recorded as wages. Most of these payments were previously registered as public benefits, and the new registration affects the employee statistics. With these changes, the latest figures cannot be compared to previous data. The old tables are, however, still accessible in the statbank but will no longer be updated. These tables are labelled 'Outdated' in the statbank.