Demographic Situation, Languages and Religions
Demographic situation
Iceland is an island in the North Atlantic Ocean, on the borders of the temperate and the Arctic zones. Its extreme northern point touches the Arctic Circle. Its nearest neighbor to the west is Greenland, at 278 km distance. The Faeroe Islands lie 420 km to the southeast.
Iceland's weather is variable and unstable. The island lies in the path of atmospheric lows, on the border margins of westerly and Arctic winds. One branch of the Gulf Stream flows northwards to the western shores of Iceland, bringing warmth that makes Iceland habitable. The mean temperature in January is –2 ºC and 10.5 ºC in July.
Iceland's total area is approximately 103,000 km², of which only about 23% is covered by vegetation. About 11.5% (11,922 km²) is covered by glaciers, and lakes account for a further 3%.
Until the 20th century, the population of Iceland was almost entirely rural. Urbanization was slow, and in 1850 the inhabitants of Reykjavík, the largest urban settlement, constituted only 1.94% of the total population. As of 2024, around 64% of the country's inhabitants lived in the Greater Reykjavík Area (Reykjavík and the surrounding municipalities), or approximately 244 thousand out of a total population of 384 thousand (source: Statistics Iceland). This development mirrors the economic changes that have taken place over the last century, as increasing industrialization, especially in the fishing industry in the early years, led to the growth of urban settlements.
There is great variation in population density across the country. While the largest municipality, Reykjavík, had 136 thousand inhabitants as of 2024, five municipalities had fewer than 100 inhabitants, and 29 fewer than 1,000 inhabitants (source: Statistics Iceland). As of August 2024 there are 62 municipalities in Iceland.
Municipalities are responsible for operating all pre-primary schools and compulsory schools (primary and lower secondary education). They are also responsible for the operation of music schools. Apart from being represented on the school boards of upper secondary schools, local authorities have no administrative responsibilities at the upper secondary level or at the higher education level.
Population and immigration
As of January 2024, there were approximately 384 thousand inhabitants in Iceland (source: Statistics Iceland). The Icelandic population was for a long time very homogeneous but has in recent times become ever more diverse, with the proportion of foreign citizens standing at 16.6% of the population in 2024, the largest group coming from Poland (Source: Statistics Iceland). Immigration has increased considerably in recent decades (see table below).
Immigration, emigration, and net immigration, 2000-2023
| Year | Immigration | Emigration | Net immigration |
|---|---|---|---|
| 2023 | 21,561 | 14,771 | 6,790 |
| 2020 | 15,249 | 13,170 | 2,079 |
| 2015 | 11,629 | 10,526 | 1,103 |
| 2010 | 5,625 | 7,759 | -2,134 |
| 2005 | 7,773 | 3,913 | 3,860 |
| 2000 | 5,203 | 3,489 | 1,714 |
Source: Statistics Iceland
As immigration increases in Iceland, the proportion of students in the school system who are immigrants also increases. In 2023, 15,5% of students in compulsory school (primary school) had a foreign mother tongue compared to 8% in 2015 and just 3,6% in 2005 (source: Statistics Iceland). The most common languages were Polish (29% of students with a foreign mother tongue), Spanish (8%), Arabic (6,9%), and English (6,7%). Some of these students are bilingual and also speak Icelandic as their mother tongue.
The Icelandic population is comparatively young in a European context. However, as in other western countries, the population is aging (see table below).
Age distribution of the Icelandic population, 2000-2024
| Year | 0-19 years | 20-64 years | 65 years and older |
|---|---|---|---|
| 2024 | 25% | 60% | 16% |
| 2020 | 25% | 60% | 15% |
| 2015 | 27% | 59% | 14% |
| 2010 | 28% | 60% | 12% |
| 2005 | 30% | 59% | 12% |
| 2000 | 31% | 57% | 12% |
Source: Statistics Iceland
Employment and unemployment
As of 2023, nearly 84% of the Icelandic population was employed and the unemployment rate was 3,5% (see tables below). Iceland has a comparatively high employment rate, especially among women (81,3% in 2024 compared to 85,9% among men), and low unemployment. The unemployment rate increased slightly during the COVID-19 pandemic, measuring 6,7% in 2020, but decreased again in the following years. In 2023, the unemployment rate was 4% among men and 2,9% among women.
Employment in Iceland, 2005-2023
| Year | 2005 | 2010 | 2015 | 2020 | 2023 |
|---|---|---|---|---|---|
| Employed (% of population, ages 16-64) | 82,8% | 77% | 82,2% | 77,9% | 83,7% |
Source: Statistics Iceland
Unemployment in Iceland, 2005-2023
| Year | 2005 | 2010 | 2015 | 2020 | 2023 |
|---|---|---|---|---|---|
| Unemployment rate (% of labor force, ages 16-64) | 2,9% | 8,5% | 4,7% | 6,7% | 3,5% |
Source: Statistics Iceland
Religion
Granted by the means of the constitution, the state church in Iceland is the Evangelical Lutheran Church. Freedom of religion is, however, also guaranteed by law. The head of the church is the Bishop of Iceland who is the supreme authority on internal church matters. External matters relating to the church are under the jurisdiction of the central government belonging to the auspices of the Ministry of the Justice.
Language
Icelandic is the native tongue of Iceland and the language of teaching. It belongs, along with Norwegian and Faeroese, to the West Scandinavian branch of the Nordic Germanic family of languages. The Icelandic language has remained the most conservative of the Scandinavian languages, retaining for example, three genders and a full system of case endings for nouns and adjectives. There is widespread awareness in the country of the difficulties facing a language spoken by a small population. Language policy in modern Iceland is characterized by two central elements: the preservation of the language, its form and its central vocabulary on the one hand, and on the other hand, encouragement of further development and adaptation of the modern Icelandic language to modern times. Icelanders are, however, also aware of the dangers of linguistic isolation, and foreign-language teaching is an important part of education.
In 2009, the parliament adopted a specific language policy focused on strengthening the foundations of language in society. The primary objective of the policy is to ensure that Icelandic will continue to be used in all areas of the society. In 2011, the Parliament accepted a legislation on the status of the Icelandic language as the language of instruction, together with the Icelandic sign language. The Icelandic sign language is now recognized as the first language of those who are hearing impaired.
In compulsory education, children learn English and Danish (or Norwegian or Swedish in certain cases instead of Danish), and those who continue to upper secondary school learn a third foreign language, usually German, French or Spanish. There are no minority languages in Iceland but the Icelandic Sign Language is officially recognized by law as a minority language of the hearing impaired community.
References
Statistics Iceland: Population by regions, sex and age 1 January 1998-2024 [accessed in February 2024]
Statistics Iceland: Population by municipalities, sex and age 1 January 1998-2024 [accessed in February 2024]
Statistics Iceland: Population - key figures 1703-2024 [accessed in February 2024]
Statistics Iceland: Foreign citizens 1950-2024 [accessed in February 2024]
Statistics Iceland: External migration by sex and citizenship 1961-2023 [accessed in February 2024]
Statistics Iceland: Population by age and dependency ratio 1951-2024 [accessed in February 2024]
Statistics Iceland: Activity rate, employment rate, underemployment rate and unemployment rate by year 2003-2023 [accessed in February 2024]
Statistics Iceland: Pupils in compulsory schools having another mother tongue than Icelandic 1997-2023 [accessed in February 2024]