Resources for employers in Iceland
Resources for employers in Iceland
We use “refugees” as a term encompassing forcibly displaced people with different legal statuses, such as refugees, subsidiary protection holders, temporary protection holders, asylum seekers and other persons in need of international protection.
In cases where differentiating information relating to each status is essential (i.e. regarding the right to work), this is clearly indicated.
Why hire refugees and stateless people in Iceland?
Iceland is home to a diverse community of refugees from Ukraine, Venezuela and Palestine, among other countries. The country has implemented several measures in order to facilitate the incorporation of refugees into the job market, as an essential step for their integration into Icelandic society. During the 2023 Global Refugee Forum, Iceland pledged to enhance social and labour integration of refugees for the period 2024 - 2025. This includes identifying meaningful employment opportunities for refugees with a focus on supporting their economic self-reliance and drawing on their education and skills, including through work-related language training,
View information on hiring refugees in Iceland by the Directorate of Labor.
Many employers in Iceland have already opened their doors to refugee jobseekers. Surveys show that employers in Iceland and elsewhere in the Nordics, see hiring refugees and other newcomers as a key to addressing labor shortages, especially in rural areas. Another strong reason for hiring is the ambition to make a social impact and creating a workplace that better reflects the diversity of society and the customer base. Finally, employers in the Nordics emphasize the positive impact of a diverse workforce on the company’s economic performance and working culture, by fostering greater flexibility, strong work ethic and loyalty, and better communication and empathy.
A good example
Kronan is an Icelandic grocery chain comprising 26 stores, primarily located in Reykjavik and the south coast. The company has a strong commitment to hiring immigrants and refugees – 40% of Kronan’s 1,100 employees have an immigrant background, representing 42 nationalities, including five refugees from Ukraine and Russia. Despite challenges with work permit and the language barrier, the company has managed to successfully integrate refugees into the workplace through a holistic approach, e.g. by providing employees and their families with the necessary information about living in Iceland; by offering language courses and a ‘welcome to work’ course for all new employees; and by organizing trainings for managers on diversity and communication. Learn more about this and other employer stories in the Nordics here.
How many refugees and stateless people are there in Iceland?
In 2024, Iceland was the host country for 8,821 refugees and 2,195 asylum-seekers. The main countries of origin of refugees were Ukraine (5,403), Venezuela (1,270), and Palestine (440).
As of mid-2024, there were also approximately 30 people recorded as stateless in Iceland.
Visit the Refugee Data Finder to learn more
How many of them are working?
As of October 2022, 537 temporary work permits have been issued to refugees from Ukraine. There is no data available on the employment rates among refugees from other countries.
What are the main challenges?
Refugee and stateless jobseekers come across several factors which hinder their access to the labor market: 1) the lack of knowledge of Icelandic or English; 2) childcare responsibilities, especially in the case of single parents; 3) the additional paperwork created by the fact that temporary protection holders require a work permit; 4) cultural barriers and discrimination.
See pages 40-43 of Skills and Labour Market Integration of Immigrants and their Children in Iceland for more information specifically on refugees and refugee/integration policy.
See the report “Barriers to employment for vulnerable groups in the Nordic countries” by the Nordic Council of Ministers
| Status | Who it applies to | Right to work? |
| Asylum-seekers | Individuals who have applied for international protection but still have not received a decision on their application. | Asylum seekers who want to work while their application for protection is being processed must apply for a provisional residence and work permit once they have a signed employment contract. |
| Refugee status | Individuals who have a well-founded fear of being persecuted for reasons of race, religion, nationality, membership of a particular social group or political opinion. | Refugees have the right to work in Iceland without a work permit. |
| Subsidiary protection | Individuals who do not qualify for a refugee status but who are unable to return to their home country because it would mean they face capital punishment, torture or inhumane or degrading treatment or punishment. | Subsidiary protection holders have the right to work in Iceland without a work permit. |
| Collective protection | Residents of Ukraine and their family members who were forced to leave their country due to the current war. | Beneficiaries of collective protection require a work permit in order to be able to work. Employers must apply for a work permit for the individuals they wish to hire. You can find more information about the process here. |
| Stateless person | A stateless person is someone who is not considered as a citizen by any country (whether recognized as such or not) | Stateless persons are entitled to international protection on grounds of statelessness and receive the same right to work as refugees once they have received an approval of their application. |
For more information on the legal framework, see the Icelandic government’s information page for Ukrainians and for applicants of international protection
Bear in mind
Asylum-seekers who are issued a provisional residence and work permit are no longer entitled to housing and financial support as applicants for protection, which may be a disincentive to start employment.
How do I connect with refugee and stateless talent?
Employers who are interested in hiring refugees in Iceland can get in touch with the Directorate of Labor (VMST). VMST offers the services of qualified counsellors who can assist employers with the recruitment of suitable refugee talent and with the incorporation of the selected candidates in the workplace. VMST also offers courses in Icelandic and social education for refugee jobseekers. Employers can post vacancies on the job board of the directorate and take advantage of several measures to promote employment. Employers can also publish job posts on platforms such as Alfred, Job.is, or Tvinna.
Employers who are interested in hiring refugees in Iceland can also get in touch with NGOs, which are providing relevant services for refugee sand asylum seekers: Red Cross, Human Rights Center and Solaris.
What can I do to support refugee and stateless employees?
Based on research with Nordic employers, some of the recommendations they give for the successful hiring of refugees include: 1) Addressing language barriers: Supporting employees who are still learning the language, offering language training on the job, and engaging interpreters or mediators (eg colleagues with the same mother tongue); 2) Nurturing a culture of diversity: Training managers and employees in intercultural communication and helping refugees understand the local culture and work ethic; 3) Fostering professional growth: Encouraging refugees with little experience to continually develop their skills, while also encouraging those refugees who are overqualified for their job to seek more advanced roles in the company; 4) Collaborating with intermediary organizations: Engaging with NGOs, staffing companies and governmental agencies which provide integration services and which can assist with administrative procedures or services like healthcare and childcare support.
Useful resources
Directorate of Labour
The Directorate of Labour provides advice and help to refugees from Ukraine seeking jobs. Services include job counselling, Icelandic language training and community education courses.
Recruitment grants
Employers can benefit from a recruitment grant between 50% and 100% of the basic unemployment benefits and an 11.5% pension fund contribution for new hires for up to six months. The subsidy is progressive, with individuals who have been unemployed for a longer time being eligible for higher benefits (up to 2,450 EUR per month).
Innovation grants
Companies which are developing new and innovative activities can tap into the innovation grant to hire qualified jobseekers. The grant covers basic unemployment benefits and pension fund contribution for full-time employment of up to 12 months. The job assignment needs to have a strong element of innovation and development.
“Skills for Employment” toolkit prepared by IKEA with best practices on how employers can open employment pathways for refugees
A report by the TENT partnership for refugees on “How Hiring Refugees Helps Brands: Europe (2023)”
2023 Briefing Paper by the World Economic Forum: “Enabling the Economic Integration of Refugees: Lessons learned on refugee employment and employability from the rapid response to Ukraine”