7 Most In-Demand Skills in Iceland for 2025

As part of the 2030 Agenda for Sustainable Development, Iceland is working to expand its tech and sustainability sectors. However, given the small population and the skill gap, the country is facing great challenges for a lot of its projects across most sectors.

To stay on track they need professionals in fields like cybersecurity, IT and nursing to support the growth and implementation of the plans. In this article, we will take a look at top skills in demand in Iceland 2025.

Key Aspects of Iceland's Work Culture and Economy

Securing jobs in Iceland requires adapting to the local work culture. Here are a few important things to keep in mind

Small Teams and Close Collaboration: Since Iceland has a small population, workplaces often have small teams. Icelandic people believe in being an all-rounder. This means everyone has a role to play, and employees are expected to help out in many areas beyond their main jobs.

Trust and Autonomy: In Icelandic workplaces, trust is a fundamental aspect when it comes to tasks and their completion. When you work in Iceland, employees are trusted to manage their tasks independently. People are expected to work autonomously, and it’s believed that workers will take responsibility to get things done without much supervision. This culture of independence is a key characteristic of work in Iceland, where employees are empowered to handle their responsibilities with minimal oversight.

Focus on Nature and Sustainability: Icelandic people are connected to nature. This is reflected in its work culture. Many industries, especially in energy and tech, prioritize sustainability and environmentally friendly practices. People in the workforce are often passionate about green solutions and keeping work aligned with the country's environmental values.

Iceland's Top Skills to Learn in 2025

As per an article by Prospects, Iceland is facing a major shortage of skilled workers in 3 main sectors like construction, Information Technology, tourism. Here are some of the in-demand skills in this country:

1. Software Development Skills

The Icelandic software development market has grown extensively in the last 5 years. The experts predict that it'll continue to grow to reach 556.5 million EUR by 2025. This is one of the main drivers for the growing need for software developers.

According to IBIS World, software companies are looking for highly skilled professionals to handle complex coding and testing tasks.

2. Artificial intelligence Skills

As per Iceland's action plan for 2026, the country aims to be a leader in AI innovation. This report states that 55% of jobs will be transformed because of AI. However, reports state that Nordic countries, including Iceland, face challenges due to labor and skill shortages in the tech sector. With the rise of AI in Iceland, learning AI related skills would be very helpful to secure a job. 

3 . Cybersecurity Skills

In 2024, almost 87,000 personal data points were exposed to data breaches in Iceland, which is a huge increase from the previous quarter. This shows the increasing threat of cyberattacks, with the highest number of exposed records previously recorded in the third quarter of 2022. To counter such threats, Defend Iceland and Digital Iceland have joined forces to bolster the nation's cybersecurity.

4 . Construction Skills

From Nordregio's report 'Towards 2024', the labor demand in Iceland has increased in the last ten years. This is because Iceland wants to focus on creating tourism infrastructure. Plus, labor-intensive sectors like construction areas, especially in the rural areas, had boosted immensely. However, there is a lack of skilled workers to cater for the development of tourist attractions as well.

Construction skills are also regarded as a shortage occupation in Iceland, according to Prospects, Iceland will require more of such skilled personnel to meet in the coming years. 

5. Cloud Computing Skills

Iceland is partnering with major cloud service providers to become a cloud infrastructure hub. This is not only attracting big companies but also small ones to enter the market.

But there's a growing shortage of skilled professionals, especially in STEM fields like cloud computing. To fill this gap, Icelandic companies are focusing on increasing participation in high-value STEM jobs. This will equip more people with the skills to support the growing tech industry.

6. Renewable Energy Skills

Iceland needs more skilled professionals in renewable energy and environmental science due to a long-term vision for sustainable development. These sectors are key to the country's growth and environmental goals.

But reports show a shortage of highly skilled workers in these fields. To fill that gap, Iceland is actively recruiting both native talent and foreign workers to work together to support the country's sustainability and innovation plans.

7. Teaching Skills

Nordic countries including Iceland, put a high value on education for their children. But in Iceland 72% of Early Childhood Education and Care (ECEC) teachers are not fully qualified. To fill that gap, there is a big need for more qualified ECEC teachers to maintain the high standards of early education in the country.

How to Boost Your Skills for the Iceland Job Market

To upskill and boost your skills to work in Iceland, connect with these training institutes:

Icelandic Ministry of Education, Science, and Culture: Offers vocational education programs across sectors like healthcare, technology, and trades. These programs provide both practical skills and academic knowledge to prepare students for the workforce.

The Directorate of Labour: Provides Vocational courses to increase employability in IT, healthcare, and technical fields. Programs to help individuals change careers or upskill.

The Icelandic Federation of Labor: Supports workplace skills training, including leadership development, labor law, and career development programs. These courses are designed to help workers enhance their professional growth and adapt to industry changes.

Conclusion 

Iceland is looking for more workers to support its future projects especially in tech sectors. Upskilling is the way to boost your chances of getting a good paid job in the country. To increase productivity of the workforce, upskilling and corporate training is the key.

If you want to upskill your team, you can rely on corporate training courses Edstellar. Edstellar offers IT, professional and tech programs to help you develop skills in various fields. With our Skill Matrix tool you can get hands-on training in any niche. This will help you to succeed in Iceland’s growing job market.