In 2012, the hourly labor cost in the European Union was EUR 24.1 (ISK 3,550, USD 26.2) on average, while in Iceland it was EUR 23.2. In 2012, the highest labor cost for all economic activities in Europe was in Norway, EUR 57.1 per paid hour. The labor cost was the lowest in Bulgaria, EUR 3.4, Iceland Review reports.
Iceland has the lowest labor cost compared to the other Nordic countries. The only Northern European country which has a lower labor cost than Iceland is the U.K., Statistics Iceland reports.
Between 2008 and 2012 the labor cost in Iceland rose by 18 percent in ISK, but the cost in euros increased by 5.6 percent, the impact of the exchange rate being 12.4 percentage.