Software Developer Hiring Trends in Reykjavik, Iceland

This report was last updated on Aug 16, 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, show a dynamic landscape marked by notable fluctuations in job openings and closures, indicating the need for strategic recruitment strategies for hiring managers.
In the past 12 weeks, the number of job openings peaked at 14 in week 21 while closures reached a high of 15, suggesting a competitive environment for software engineer hires in Reykjavik, with critical implications for recruitment efforts.
The technology profile in Reykjavik's job market highlights a significant demand for Java, JavaScript, and Python skills, essential for attracting top software developers and meeting emerging project requirements in the thriving tech sector.
Reykjavik dominates the software engineer job market in Iceland, accounting for 66% of all job openings, presenting substantial opportunities for talent acquisition in the capital city, with full-time roles making up 77% of positions.
With a median time to hire of 35 days for Software Engineers, fast-paced hiring strategies are essential for CTOs and hiring managers to navigate the tighter labor market, characterized by a higher jobs-to-talent ratio.

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

In recent weeks, the software engineer job market in Reykjavik has demonstrated notable fluctuations. During the last 12 weeks, the number of new positions posted peaked in week 21 with 14 openings, while the lowest point was in week 20 with just 2 new roles. On the other side, job closures have shown a concerning trend; reaching a high of 15 closures in week 26. This raise in closed positions outpaces the hiring activity, indicating potential challenges for hiring managers and CTOs. Compared to other European tech hubs, Reykjavik's software engineer job market exhibits variability that warrants a strategic focus on effective recruitment strategies.

Who else is hiring for software Engineers in Iceland:

Company name	Country	Industry	Founded	# Job openings
Marriott International	Italy	Hospitality	1927	17
Supercent	South Korea	Computer Games	2021	9
TELUS Digital	Canada	Information Technology & Services	2005	7
The Flex	United Kingdom	Real Estate	2019	5
Fudan University	null	null	null	5
Indie Campers	Portugal	Leisure, Travel & Tourism	2013	4
Crusoe	United States	Information Technology & Services	2018	3
CCP Games	Iceland	Computer Games	1997	3
NetApp	United States	Information Technology & Services	1992	2
Alcoa	United States	Mining & Metals	1888	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 talent market for Software Engineers in Europe presents varying degrees of hiring challenges across different countries. In Iceland, the count of job openings is significantly lower than that of larger countries like Germany and the Netherlands, where the ratio of available talent to job openings reflects a more favorable recruitment landscape. For instance, Germany boasts a robust talent pool with ample job opportunities, yielding a low hiring difficulty, while the Netherlands also demonstrates a manageable ratio that supports hiring initiatives. In contrast, Iceland's higher jobs-to-talent ratio indicates a tighter labor market, suggesting that hiring Software Engineers in Reykjavik may prove more challenging due to limited available talent. This trend is crucial for hiring managers, as they must adopt targeted recruitment strategies to attract and retain top Engineering talent in the region.

Seniority distribution of Software Engineer job openings in Reykjavik

Seniority Distribution of Software Engineering Jobs in Reykjavik

In the vibrant software job market in Iceland, specifically in Reykjavik, the distribution of software engineering positions reveals a clear hierarchy of seniority. Entry-level roles dominate the landscape, comprising 45% of available positions, while Mid-Senior level roles account for 37%. Noteworthy is the limited presence of higher seniority roles, with only 1% designated for Associate, Director, and Executive levels combined.

Preferred employment type for Engineering roles in Iceland

In the Icelandic software development job market, full-time positions dominate, representing 77% of available engineering roles. Part-time roles account for 20%, while contract positions constitute 7%. This distribution highlights the strong preference for stable employment in Reykjavik's tech sector, offering valuable insights for hiring managers and recruiters.

Time to Hire Distribution for Software in Iceland

How long does it take to hire Software Engineers

The time to hire distribution for Software jobs in Reykjavik highlights notable trends that hiring managers in Iceland must consider. A considerable portion of candidates, approximately 45, are hired within the 30-day timeframe, suggesting a strong market where quick recruitment can be a competitive advantage. Additionally, 19 candidates are hired in 15 days, indicating a swift selection process for roles that require immediate filling. However, the presence of longer hiring intervals, with 10 candidates taking up to 50 days or more, suggests that recruitment strategies may need adjustment for specialized positions. This time to hire data provides a critical overview for CTOs and recruiters looking to optimize talent acquisition in the Icelandic software job market.

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Most popular cities in Iceland to hire Software Engineers

Top 5 cities in Iceland to hire Software Engineers

In the current software engineers job market in Iceland, Reykjavik stands out as the predominant location, accounting for 66% of all relevant job openings. Following Reykjavik, the larger region of Iceland contributes 15%, while Kópavogur adds a modest 7%. These trends underscore the concentration of software development opportunities in the capital, as illustrated in the accompanying chart.

Most sought after technologies in Reykjavik for Software

Key technologies for Software Engineers

In the dynamic software job market of Iceland, particularly in Reykjavik, certain technologies have emerged as pivotal for aspiring Software Engineers. Java stands out with remarkable frequency in job postings, reflecting its enduring relevance, while JavaScript and Python also reveal significant demand, showcasing their versatility across applications. React has made a substantial impact, especially in front-end development, while PHP and SQL remain essential for many web-based projects. For a comprehensive view of these technologies and their usage trends, please refer to the accompanying chart.

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