In the first quarter of 2018, foreign workers accounted for 17.5% of working people, up from 15.1% in the same quarter of 2017, according to figures from Statistics Iceland.

Data from Statistics Iceland also showed that total wages in the first quarter of 2018 increased by 4.9% from the previous year. The change between the first quarter of 2017 and the first quarter of 2018 is affected by pay raises stipulated in collective agreements and corporate agreements. For example, a general pay raise of 4.5% was stipulated in May 2017 in the private sector and of 3.0% to 4.5% in the public sector in June 2017.

Furthermore, Statistics Iceland stated that the composition of the labour force has changed during the period, citing the example of the number of foreign workers increasing this year. At the same time the number of employed persons increased by 4.6%.

Meanwhile, Ice News reports that the number of workers employed by staffing agencies in Iceland has grown fivefold since 2016. In 2018, there were 1,500 workers employed by employment agencies, compared to 300 in 2016. Most foreign workers are coming to Iceland through such agencies come from Eastern-Europe and work in construction, workshops, restaurants, and the tourism industry.