Migrants are paid less than native-born Icelanders, but they no longer hold grudges against them, says Fréttablaðið.
A new report released today found that while foreign-born women earn less than foreign men, the wage gap between men and women is smaller than natives.
Work experience had a significant positive effect on immigrants’ income, with migrants who worked as professionals or engineers earning more than others. On the other hand, merchants, fisheries workers, and people working in the service industry earned significantly less than other immigrants.
6 working factors
The report considers six factors: salary satisfaction, job security, job choice, self-employment opportunities, stated salary, and well-being. According to the report’s findings, the immigrant was only equal to the native in one aspect of her: wage satisfaction. In other ways, they have done worse, especially in terms of job security.
Between 2016, 2017 and 2020, the situation of immigrants in the labor market deteriorated, mainly in terms of job security. Various other living conditions have also deteriorated, mainly regarding livelihoods and various services. However, there have been some improvements, particularly regarding rental apartments, road networks and internet connectivity.
As of January 2021, immigrants make up 15% of the population, compared to just 1.9% in January 1996, according to the Icelandic Statistics Office demographics.
In 2018, most migrants worked in the distinctive sectors of tourism (27%), followed by manufacturing (18%) and public sector (13%) jobs. By 2020, the share was largest in production (20%) and tourism (20%), followed by public services (18%).
The report also says immigrants are less likely than natives to start their own businesses in 2020.
Foreign single parents appear to be in a particularly vulnerable position in the labor market. Immigrants living in more populated communities typically did better in the 2020 labor market than those in less populated communities.