Ministers Call for Improved Integration of Skilled Immigrants

2026-02-26 - 11:35

A large proportion of university-educated immigrants in Iceland are employed in roles that do not match their qualifications, according to the Ministry of Labour and Social Affairs. Citing OECD data, officials say 40% of graduates from abroad work in positions where their education is not fully utilised. As reported by RÚV, that is a higher share than in comparable countries. What's the Story? 40% of university-educated immigrants in Iceland working in roles not matching qualifications, according to OECD data 37% labour market growth over 20 years; 73% of that increase accounted for by immigrants Calls for immigration policy linked to labour demand and improved support for skilled workers Worker sawing the pavement next to Tjörnin, the Reykjavík City Pond. Photo: Golli. Iceland Review. Workforce gaps highlighted Over the past two decades, Iceland’s labour market has grown by 37%, with immigrants accounting for 73% of that increase. Ingvar Freyr Ingvarsson, an economist at the Ministry of Finance and Economic Affairs, said the issue requires attention. “It may be that the people who come here are not better supported, that they are not better placed to get into the jobs. It can also be mentioned that the pace has been really fast,” he said when interviewed by local media. He added that an ageing domestic workforce means Iceland will need to attract more foreign workers in the coming years, particularly in specialised roles such as primary education. “Especially if we just look around us, other nations are struggling with this aging workforce. And that tells us that there will be a much greater demand for immigrants in the coming years. We need to compete with other nations.” BHM has proposed linking immigration more closely to labour demand. “That immigration needs be linked to the country’s real manpower needs. This should be a policy for political parties.”