Software Developer Hiring Trends in Reykjavik, Iceland

This report was last updated on Sep 6, 2025

Bence Gedai

Founder

I analyze live hiring data and tech job trends across Europe to give CTOs and Product Leaders a strategic edge. By tracking tens of thousands of open roles each week, I uncover which skills, roles, and locations are in highest demand — potential competitors, typical time to hire, talent pool sizes, and more to help you prioritize hiring, benchmark and stay competitive in a fast-moving market.

Key learnings from this report

The software engineers job market trends in Iceland, particularly in Reykjavik, reveal dynamic fluctuations with a total of 300 job openings and a talent pool of 1,200 qualified candidates, creating a jobs-to-talent pool ratio of 4.0, indicating a manageable hiring landscape for tech leads and CTOs.
Reykjavik dominates the software job market in Iceland, accounting for 76% of the total job openings, making it the key city for Software Developer opportunities in Iceland Reykjavik.
The competition for securing software engineers is considerably varied; while the current hiring environment can be competitive, the average time to hire is 35 days, with 56% of positions filled within 30 days, signaling an efficient recruitment process.
Top hiring companies in Reykjavik include CCP Games, Alvotech, and Indie Campers, underscoring strong industry demand for software engineering roles across diverse sectors.
Hiring strategies for CTOs in Iceland's tech sector should emphasize the importance of high-demand technologies such as Java, Python, and JavaScript, which are integral to the majority of job postings in the Icelandic software development landscape.

Number of roles opened and closed for Software Engineers in Reykjavik in the last 3 months

In the past 12 weeks, the software engineering job market in Reykjavik has exhibited notable fluctuations, with a total of 4 to 8 new positions opening weekly. Notably, week 29 saw the highest influx of 8 new job postings, reflecting a spike in demand for software engineers. However, this increase in opportunities contrasts sharply with the steady closure of positions, peaking at 17 closures in week 35, showcasing a challenging landscape for tech recruitment. Compared to other European tech hubs, the turbulent balance between openings and closures in Reykjavik highlights the need for effective recruitment strategies for CTOs navigating the Icelandic software job market.

Who else is hiring for software Engineers in Iceland:

Company name	Country	Industry	Founded	# Job openings
The Flex	United Kingdom	Real Estate	2019	6
TELUS Digital	Canada	Information Technology & Services	2005	5
Fudan University	null	null	null	5
Indie Campers	Portugal	Leisure, Travel & Tourism	2013	4
CCP Games	Iceland	Computer Games	1997	4
Speechify	Ukraine	Information Technology & Services	2017	3
Crusoe	United States	Information Technology & Services	2018	3
Marriott International	Italy	Hospitality	1927	3
TÜV Rheinland Group	Germany	Public Safety	1872	2
Alvotech	Iceland	Research	2013	2

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Talent pool vs job openings for Software Engineers in Iceland

How competitive it is to hire Software Engineers in Iceland

The software engineer job market in Iceland, particularly in Reykjavik, is characterized by a competitive landscape when compared to several other European countries. With a total of 300 job openings and a talent pool of 1,200 qualified candidates, the jobs-to-talent pool ratio stands at 4.0. This suggests a relatively manageable level of hiring difficulty in Iceland. In contrast, neighboring countries such as Sweden, with a ratio of 2.5, and Denmark, at 3.0, indicate a more challenging environment for recruiting software engineers. Furthermore, the UK, known for having a higher concentration of tech talent, presents a lower ratio of 1.8, emphasizing the increasing challenges hiring managers face in larger markets. Consequently, for CTOs and engineering managers looking at recruitment strategies, focusing on Reykjavik may provide a more favorable opportunity to secure top software development talent.

Seniority distribution of Software Engineer job openings in Reykjavik

Seniority Distribution of Software Engineering Jobs in Reykjavik

In the current software job market in Iceland, particularly in Reykjavik, the distribution of engineering roles reveals significant trends. Approximately 50% of positions are designated for Entry level Software Engineers, followed by 38% for Mid-Senior level roles. Notably, Associate positions represent only around 4% of the available jobs, indicating a potential gap in this seniority tier within the local tech landscape.

Preferred employment type for Engineering roles in Iceland

In the Icelandic software engineering job market, the majority of roles are full-time positions, constituting 77% of the employment landscape. Part-time roles follow, making up 20% of the available positions, while contract opportunities represent a smaller segment at 4%. This distribution highlights the predominance of full-time employment in meeting the demand for Software Engineers in Iceland, particularly in Reykjavik.

Time to Hire Distribution for Software in Iceland

How long does it take to hire Software Engineers

Analysis of the time to hire distribution for software jobs in Iceland reveals significant insights for hiring managers in Reykjavik. The majority of candidates, approximately 56%, are secured within a 30-day period, indicating a swift recruitment process prevalent in the local tech sector. However, there remains a notable proportion (21%) of positions that take up to 15 days to fill, suggesting a rapid response strategy is effective. Additionally, hiring outside the 30 to 40-day range decreases sharply, with only 22% of roles extending beyond this timeframe, highlighting an efficient market for software engineers. For CTOs and engineering managers, understanding these dynamics is crucial when formulating recruitment strategies in the competitive Iceland Reykjavik tech landscape.

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Most popular cities in Iceland to hire Software Engineers

Top 5 cities in Iceland to hire Software Engineers

In analyzing the software engineers job market trends in Iceland, Reykjavik stands out as the dominant hub, accounting for 76% of the total job openings. Following Reykjavik, the broader region of Iceland comprises 14% of the job market, while Kópavogur represents 6% of available roles. This data underscores Reykjavik's significance in the software job market in Iceland, making it a focal point for hiring managers and CTOs aiming to tap into local talent.

Most sought after technologies in Reykjavik for Software

Key technologies for Software Engineers

In the competitive software job market in Iceland, particularly in Reykjavik, several technologies stand out due to their prevalence in job postings. Java emerges as a leading technology with a frequency of 10,875 mentions, making it a critical skill for prospective candidates. Following closely is Python, which appears 10,977 times, highlighting its importance in various development roles. JavaScript also plays a significant role with 8,244 occurrences, reflecting its necessity in full-stack development. Additionally, the rise of TypeScript at 5,477 mentions signals a growing trend towards more robust web development practices. These insights reinforce the necessity for hiring managers to prioritize these technologies in their recruitment strategies, as illustrated in the accompanying chart.

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