Unemployment
31. Aug 2021
Unemployment rate in June was 1.2%

There were 347 full-time unemployed people in the Faroe Islands in June 2021.

Unemployed people are defined as those without a job, actively seeking work and fully available to the job market.

The graph below shows the unemployment rate and the trend. The semi-transparent line represents the unemployment rate, and the solid line shows the trend.

In June, the unemployment rate was 1.2% (347 full-time unemployed people). A total of 430 people are registered as ‘affected by unemployment’, which means they have been unemployed for one or more days in a month.

The unemployment rate in June 2020 was 1.8%. The trend indicates a steady decline over the past year.

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In June, the unemployment figure was at an equal 1.2% across both sexes. In June 2020, this figure was 1.8% for male workers and 1.5% for female workers.

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The map below shows the unemployment rates in each region. In June, the lowest unemployment rates were in Norðoyggjar (0.6%) and Eysturoy (0.8%).

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The graph below shows how long people have been unemployed. In June, 12.3% of unemployed people had been out of work for more than a year, compared to 7.3% in June 2020.

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Why is there a two-month lag in the figures?

Many delayed entries are filed after the end of the registered month. A two-month lag helps ensure accuracy in the statistics.

About unemployment

An unemployed person is defined as someone without a job, fully available to the job market and actively seeking work, aged between 16 and 66 and registered as unemployed in the Faroese unemployment system and the social services in accordance with the above conditions.

Two categories are used in unemployment statistics: full-time unemployment and affected by unemployment.

Affected by unemployment: The number of people who have been unemployed for one or more days in a month.

Full-time unemployment: Since not everyone is unemployed every day of a given month, all individuals affected by unemployment are converted to full-time unemployed. For example, a person who has been unemployed for half a month counts as 0.5 full-time unemployed.

Unemployment rate: The full-time unemployment rate relative to the size of the labour force.