Immigration in Iceland
Addressing challenges and unleashing the benefits
Immigration has increased rapidly since the late 1990s, driven largely by strong economic
growth and high standards of living. By mid-2023, foreign citizens made up around
18% of the population. This has brought important economic benefits to Iceland, including
by boosting the working age population and helping the country to meet labour demands
in fast-growing sectors. However, there are important challenges regarding the integration
of immigrants and their children that need to be addressed through a comprehensive
approach, helping to make the most of immigration. Successful labour market integration
of immigrants requires more effective language training for adults and an improvement
in skills recognition procedures. At the same time, immigrants need more opportunities
to work in the public sector and the adult learning system should be adjusted to better
encompass their training needs. Strengthening language skills is key to improving
the weak educational outcomes of immigrant students. Enhancing teachers’ preparedness
to accommodate students’ diverse educational needs is another pre-requisite. Strengthening
integration further hinges upon meeting the housing needs of the immigrant population,
including through an increase in the supply of social and affordable housing.
Published on November 03, 2023
In series:OECD Economics Department Working Papersview more titles