The position of immigrants on the labor market in times of crisis depending on the settlement pattern and industries

Abstract

Unemployment was higher amongst immigrants than Icelanders during the economic crisis following COVID-19. This study investigated the status of immigrants in the labour market in the autumn of 2020 and compared it to that of Icelanders. The aim was to investigate whether immigrants enjoyed economic advantages that certain regions and industries have historically provided Icelanders. Data from the 2020 Regional Residential Survey were utilised (10,253 participants with 1,261 immigrants). Findings suggested that the situation of immigrants in the labour market was worse than that of Icelanders. Immigrants in the capital area did not enjoy higher salaries, increased job security, and job selection like Icelanders did. Industries that promised prosperity for Icelanders, such as fisheries, construction, and management, did not result in increased income, satisfaction with wages, or job security for immigrants. Job security and job selection were in no industry as low for immigrants as in tourism. It was noteworthy that immigrants in rural areas seemed to be more satisfied with their living conditions than immigrants in the capital area or urban areas in the countryside. The conclusion is that immigrants did not enjoy the so-called agglomeration economies (e.g., higher wages in urban areas and profitable industries, such as fisheries).