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Employment Market 

With unemployment at 2%, well below the OECD average of 7%, it is definitely a job seekers market in Iceland. The Icelandic economy is currently in a strong upswing. Along with a rising level of economic activity, the labor market has improved dramatically and labor shortages are beginning to be encountered. While Iceland is home to many well-trained and talented people, nevertheless there are skill shortages, particularly in IT. Many are concerned about the lack of human resources. 

The level of real disposable income in Iceland has risen sharply in recent years, up 8% in 1997 and 9% in 1998. Well-educated Icelanders themselves now see more point in working in the country than was the case 10 years ago, when many sought employment in Europe and the US. The net migration of employees in Iceland in 1998 was 4%.
 

Education 

Iceland has long been one of the world's most literate countries. Education is compulsory for ten years, with over 25 percent of the work-force holding university degrees. Many have studied abroad, mostly in Europe or North America. 

English and a Scandinavian language are part of the basic education. Most people entering further education add a third foreign language, usually German or French. Communication is therefore very easy at general, business and technical levels. This has also meant that it is unnecessary to translate software into Icelandic, even though it is often done for marketing purposes. As a part of the curriculum, all schools include some computer education, and advanced courses are available at various levels. Several hundred students have graduated from the University of Iceland with a B.Sc. degree in Computer Science, and a Master's Degree will become available in the fall of 1998. Computer skills also feature heavily in a number of other university majors. Other colleges offer software-related studies as well and have qualified hundreds of programmers. Refresher courses are also available, covering everything from basic use to implementation of the latest algorithms and computer technology.

The five major Universities in Iceland are:

Reykjavik University recently changed its name from the Reykjavik School of Business. Administration felt this was necessary given that more students at the School are studying computer science now then business. The university plans to offer a one-year MBA program focused on e-commerce in January. The study language will be English, and the aim is to attract students and teachers from Iceland and other countries. As you would expect in a country with the highest internet penetration in the world, the university is heavily reliant on the web and the knowledge available through it. It has what may be the smallest physical library of any university -  only 1,000 books - and relies mainly on developing electronic databases and reserves.
 

Technical expertise

Computer professionals in Iceland can muster in-depth knowledge of a wide range of programming languages (Fortran, Cobol, PL/I, RPG, Natural, SQL, Pascal, C, C++, Java, Assembly, Visual Basic) and database systems (Oracle, Adabas, Informix, dBase, Access, Silicon Graphics), as well as advanced design and development techniques. A wide range of hardware is in use, along with the knowledge of appropriate operating systems and systems software. Icelanders are accustomed to working with international standards. Applications are not only PC-based but frequently integrated into chips for dedicated industrial use and process control systems.
 

This site is designed for educational purposes only for the class, "Impacts of National IT Environments on Business" taught by Professor Erran Carmel at the American University, Kogod School of Business.