View of Eyjafjor∂ur. Photo: HJALTI JÓHANNESSON
One of the major characteristics of the Icelandic labour market is the high activity rates of the labour force. In 2002, the activity rate was 82.2 percent for the age group 16-74. The total labour market consisted of about 162 000 persons.
The most notable change in recent years is the rising activity rate among women followed by the declining activity rate in the age group 64-72.Another distinctive feature is the large number of people holding more than one job simultaneously. In 2002, 17.2 percent of employed people held two or more jobs. This is slightly more common outside the capital area.
The unemployment rate in 2004, in the North East Iceland, was 2.8 percent, the second highest in the country. Unemployment among women is higher than that among men. There are greater seasonal differences in unemployment in the North East region than in the country as a whole.
In recent years, Eyjafjör∂ur has enjoyed a slight growth in total employment while at the same time experiencing a rapid increase in unemployment. This can best be explained by reference to the significant decline in manufacturing employment and to a growing population.
In 2004, a Growth Agreement for the Eyjafjör∂ur Region was signed with among others the Ministry of Industry and the Industrial Development Company of the Eyjafjör∂ur Region. The estimated budget for the growth agreement is ISK 177.5 million over a four-year period. Its main purpose is to strengthen the region as a desirable place in which to live and work.
Eyjafjör∂ur is centrally located in northern Iceland. Mountains rising up to 1 536 metres surround the valley to the east and west. The size of the area is approximately 4 300 km2. The population density is only 5.1 inhabitants per km2.
Road connections to the capital area and to the east are via mountain passes of 540 and 325 metres, respectively, above sea level. During heavy snowstorms, these roads are occasionally closed to traffic. The mountains provide a real barrier and hinder easy transport and communications between regions. Future plans exist to build tunnels to ease such hindrances.
Domestic flight connections to and from Akureyri are relatively frequent. The flight time to Reykjavik is about 45 minutes.
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