Labour force, survey
23. May 2025
Faroese activity rate continuously the highest in Europe
The labour force are those that can contribute to the labour force. This includes the active population - meaning employed and self-employed persons - and unemployed persons actively looking for work. The activity rate measures the percentage of the working-age population participating in the labour force.
A large proportion of the Faroese population is affiliated with the Faroese labour market. In November 2024, the Faroese activity rate was 85% for those aged 15 to 74. The activity rate has been ranging between 83% and 85% in recent years.
Still the highest rate in Europe
The annual labour force survey is conducted internationally in accordance with the guidelines of the International Labor Organization (ILO) under the United Nations. This makes the Faroese figures comparable with other countries in Eurostat's statistical database.
The Faroese labour force figures for 2024 are compared with Q4 2024 figures from Eurostat. The 15-74 age range is the internationally comparable age range used in this context.
The graph below shows that the Faroes still have the highest activity rate in Europe, followed by Iceland, at 80%. The Faroes and Iceland have for many years had a significantly higher rate than the other Nordic countries. Sweden and Denmark had a rate of 74%, while Norway was at 73%.
The Faroes have Europe’s highest activity rate for both sexes. The gender gap in the Faroese labour market is smaller than in most other countries.
Faroese men have an activity rate of 87%, compared to 85% in Iceland, 78% in Denmark and an EU average of 71%.
The activity rate for Faroese women is 83%, compared to 75% in Iceland, 71% in Denmark and an EU average of 61%.
The Eurostat figures are available here.
Particularly high activity among young and old
The Faroes have higher activity rates than Iceland, Denmark and the EU across most age groups. The difference is mainly due to more women participating in the Faroese labour market.
The Faroese rate is particularly high in the younger and older age groups compared to the rest of Europe, and this applies to both sexes. The 15-20 age group in the Faroes has a rate of 73%, compared to 70% in Iceland and 57% in Denmark. The EU average activity rate for this age group is about 20%. The rate for the 65-69 age group is 67%. For the 70-74 group, the rate is 33%, which is more than double the rate registered in Iceland and Denmark.
The activity rate of Faroese women is higher, across nearly all age groups, than in the rest of Europe. Denmark and Iceland have the same activity rate as the Faroes for women in the 25-29 age group.
For men, the difference between the Faroes and other countries can be seen in the young and old age groups. Faroese age groups from ages 25 to 50 have roughly similar activity rates to other European countries. The Faroese activity rate is particularly close to the Icelandic rate.
Eurostat activity rates by sex and age are available here.
About the labour force survey
The annual labour force survey is conducted in accordance with the general guidelines of the International Labour Organization (ILO), a tripartite United Nations agency. This allows for direct comparisons between the Faroese figures and those from other nations.
The labour force is determined based on information derived from administrative sources such as the national register, the tax register, the VAT register, the unemployment system and student registers administered by the Ministry of Education.
Spot checks are made through phone interviews with about 1,300 of the approximately 9,500 individuals who are not included in the administrative sources. The survey is conducted annually in November, with questions focused on working conditions in the week containing 15 November.
Everyone who carried out more than one hour of occupational work during the one-week survey period in November is classified as being in active employment, regardless of whether the work was paid or unpaid. Those who do not have a job are only classified as unemployed if they are actively looking for work and are ready to start work within two weeks. . The survey and the phone interviews cover permanent residents of the Faroe Islands aged between 15 and 74.
The labour force includes all occupationally active people such as employees, independent traders and employers, unemployed people looking for work and people who carry out unpaid work in a family business. The inactive population includes full-time students with no income from work, people who due to illness, reduced work capacity or similar reasons are not part of the labour market and people who have left the labour market due to old age or other reasons.
Prior to 2015, the figures were not based on registers but were exclusively based on the questionnaire, with results subsequently extrapolated to represent the full workforce
Note that the unemployment rate in this survey is not directly comparable with the other unemployment figures from Statistics Faroe Islands, which are based on records from the Unemployment Office (ALS) and the Social Agencies.
Definitions:
- Labour Force: The total number of people who are in employment and those who are unemployed but actively seeking work. It represents the portion of the population available for work.
- Population: In the context of this article, this refers specifically to the working-age population, defined as individuals aged 15-74.
- Activity rate: The percentage of working age people (aged 15-74) participating in the labour force.
- Employment rate: The percentage of the working-age population (aged 15-74) who are currently employed. Unlike the activity rate, which includes both employed and unemployed individuals, the employment rate focuses solely on those who are working.
- Unemployment rate: The percentage of the labour force that is unemployed.
- In kind: Payments, benefits or transactions made in the form of goods or services rather than monetary compensation.
- EA: The 20 countries that use the EURO as a currency (EA20, 2023).
- EU: The current 27 member countries of the European Union (ES27, 2020).