The number of unemployed people in Iceland is rising faster than usual this autumn, largely due to the collapse of Play airline and layoffs at PCC BakkiSilicon in Húsavík, Morgunblaðið reports.
Unnur Sverrisdóttir, director of the Directorate of Labour, explained that seasonal unemployment typically increases in October as tourism and construction contracts, before balancing out in the spring. This year, however, the scale is “on a completely different level,” as entire groups of employees in full-time positions have suddenly lost their jobs.
Mass layoffs occurred in five companies, including one in fisheries, another in food production in Akureyri, and three linked to Play’s bankruptcy. In addition, around 110 workers at PCC BakkiSilicon in Húsavík have been dismissed in recent months due to continued uncertainty in the silicon market.
In response, the Directorate of Labour’s office in Akureyri will meet with former PCC employees in Húsavík next week to provide additional support. “Normally we meet as needed, but the situation has become so serious that we are now holding formal sessions,” Unnur said. The next meeting is scheduled for Wednesday.
