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Software Developer Hiring Trends in Reykjavik, Iceland

This report was last updated on Jun 7, 2025

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, indicate a total of 200 job openings against a talent pool of 1,000, leading to a jobs-to-talent ratio of 5, reflecting a competitive hiring environment for CTOs and hiring managers.
  • In the past 12 weeks, Reykjavik's software job market has seen a total of 12 new openings, with a peak of 44 roles in week 14, underscoring the robust growth in demand for software developers amidst fluctuations.
  • Full-time positions represent a significant 81% of the employment landscape in Iceland, indicating a strong preference for stable, long-term roles, which is a vital insight for recruitment strategies targeting aspiring software engineers.
  • Reykjavik is the dominant hub for software developer opportunities, accounting for 78% of the job market in Iceland, followed by Kópavogur at 7%, highlighting the need for focused hiring efforts in this key city.
  • The current median time to hire for software engineer positions in Reykjavik stands at 35 days, suggesting that while demand is high, hiring managers must expedite their recruitment processes to secure top talent in a competitive landscape.
Number of roles opened and closed for Software Engineers in Reykjavik in the last 3 months

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

In the past 12 weeks, the software job market in Iceland Reykjavik has exhibited significant fluctuations, with a peak of 44 new software developer positions posted in week 14, compared to a comparative low of 1 job posted in week 17. Over this period, a total of 12 new jobs have been opened, which starkly contrasts with the 6 jobs closed in week 15 alone. The net job growth reflects a keen interest in recruiting software engineers, suggesting a positive demand trajectory. In comparison to other roles in Reykjavik, the surge in software developer opportunities indicates robust recruitment strategies in the tech sector, particularly for senior developers, and aligns with broader trends in hiring across Europe.

Who else is hiring for software Engineers in Iceland:

Company name Country Industry Founded # Job openings
Marriott International logo Marriott International Italy Hospitality 1927 22
Mindrift logo Mindrift United States Information Technology & Services null 12
Alvotech logo Alvotech Iceland Research 2013 10
Upwind Security logo Upwind Security United States Computer & Network Security 2022 8
TELUS Digital logo TELUS Digital Canada Information Technology & Services 2005 7
CCP Games logo CCP Games Iceland Computer Games 1997 7
Genius Sports logo Genius Sports United Kingdom Information Technology & Services 2001 6
Fudan University logo Fudan University null null null 5
COWI logo COWI Denmark Civil Engineering 1930 4
Alcoa logo Alcoa United States Mining & Metals 1888 4

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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 engineers job market trends in Iceland, particularly in Reykjavik, reveal a critical perspective when compared to other European nations. Iceland currently has a total of 200 job openings juxtaposed against an available talent pool of 1,000, resulting in a jobs-to-talent pool ratio of 5. This ratio indicates a relatively challenging hiring environment for CTOs and hiring managers when sourcing software engineers. In contrast, countries like Germany, with a larger number of job openings and a more extensive talent pool, present a more favorable ratio. Similarly, Finland and Sweden exhibit trends that further alleviate the pressure on hiring managers, suggesting that they may find it easier to recruit software talent compared to Iceland. Thus, while opportunities abound for software developers in Iceland Reykjavik, hiring strategies must be carefully tailored to navigate this competitive landscape.

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 Reykjavik, the majority of positions are concentrated among entry-level and mid-senior level roles, comprising 41% and 38% of the total job openings, respectively. Meanwhile, internship positions account for a smaller segment at 4%. This distribution highlights the need for effective recruitment strategies for CTOs looking to attract and retain talent in this competitive landscape.

Chart about preferred employment type for Engineering roles in Iceland

Preferred employment type for Engineering roles in Iceland

In Iceland's software engineering job market, the distribution of employment types reveals significant trends. Full-time roles dominate the landscape, comprising 81% of available positions. Part-time employment accounts for 17% of job offerings, while contract roles represent a smaller segment at 2%. These statistics provide valuable insights for hiring managers in Reykjavik as they navigate recruitment strategies amid evolving market dynamics.

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 Iceland, particularly in Reykjavik, reveals significant insights for hiring managers and CTOs. The most common hiring duration falls within the 25 to 35 days range, reflecting a count of 38 candidates seeking positions in this timeframe. Notably, 19 candidates took approximately 25 days to hire, while another 19 candidates were hired at the 35-day mark. This data suggests that while demand for software engineers remains robust, hiring managers need to adapt their recruitment strategies to capitalize on the competitive landscape and the urgency in hiring senior software developers. Understanding these trends can enable more effective planning and quicker placements within the software job market in Iceland, ultimately enhancing recruitment strategies tailored for the tech sector.

Most popular cities in Iceland to hire Software Engineers

Top 5 cities in Iceland to hire Software Engineers

The software engineers job market in Iceland is predominantly concentrated in Reykjavik, which accounts for 78% of the total job openings. Following Reykjavik, the next notable city is Kópavogur, contributing 7% to the job market, with 16 positions available. Additionally, the remote job opportunities and those in Garðabær represent 4% and 2% respectively. This data highlights Reykjavik as the central hub for software job market trends in Iceland.

Most sought after technologies in Reykjavik for Software

Key technologies for Software Engineers

In analyzing the software job market trends in Iceland Reykjavik, we observe that certain technologies dominate the landscape. JavaScript emerges as a leading technology, utilized in numerous job openings with a frequency of 7,779, followed closely by Java at 9,663. C# is also prominent, appearing in 6,004 postings, while Python shows strong usage at 7,927. Other notable technologies include .NET (5,189), React (5,768), and TypeScript (4,451). This data underscores the essential skills sought by employers in the recruitment strategies for CTOs and hiring managers within Reykjavik's tech sector, as illustrated in the accompanying chart.

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