Software Developer Hiring Trends in 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 job market in Iceland presents a unique landscape, with a talent pool that is similarly sized to its job openings, signifying a challenging recruitment environment for Software Engineers.
In the past 12 weeks, 18 new Software Developer roles peaked in week 29, while significant job closures, including 19 positions in week 24, contributed to a net decline of open roles, highlighting the need for effective recruitment strategies.
Reykjavik leads as the dominant city for software engineering opportunities, accounting for 73% of all job openings, making it the prime location for CTOs and hiring managers aiming to attract talent.
The preferred employment type for Software Engineering roles is full-time, with 79% of positions classified as such, indicating a trend that recruitment strategies must align with to attract top-tier software engineer candidates.
With a median hire time of 35 days, hiring managers should be prepared for extended recruitment cycles for specialized roles, emphasizing the importance of strategic planning in the hiring process.

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

In the past 12 weeks, Iceland's software engineering job market has exhibited fluctuating activity, with a peak of 18 new Software Developer roles posted in week 29. Notably, the closed job count reveals a concerning trend, as 19 positions were closed in week 24 alone, leading to a significant net decline of open roles during that period. Comparatively, while other roles in Iceland's tech sector may not reflect such dynamic shifts, the overall demand for Software Engineers suggests a need for effective recruitment strategies. Hiring managers and CTOs should consider these software job market trends in Iceland to optimize their future hiring approaches and ensure they attract the right talent.

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 presents a nuanced scenario when compared to other European countries. With a ratio of talent pool to job openings suggesting a challenging recruitment landscape, Iceland has a count of job openings closely resembling that of countries like Slovenia and Estonia, while countries such as Germany and France boast a larger number of job vacancies. Specifically, Iceland's talent market demonstrates a significant gap, raising concerns for hiring managers regarding the availability of qualified candidates. This disparity highlights the necessity for strategic recruitment initiatives tailored for CTOs and engineering managers aiming to secure skilled software developers in Iceland's competitive tech sector.

Seniority distribution of Software Engineer job openings in Iceland

Seniority Distribution of Software Engineering Jobs in Iceland

The software engineering job market in Iceland shows a notable seniority distribution, where Entry level positions make up 52% of the available roles, followed closely by Mid-Senior level jobs at 46%. Internship opportunities represent a smaller segment at 3%. This distribution underscores the importance of tailored recruitment strategies for CTOs and hiring managers focusing on building diverse teams across varying experience levels.

Preferred employment type for Engineering roles in Iceland

The software job market in Iceland demonstrates a clear preference for full-time employment, accounting for 79% of available engineering roles. Part-time positions represent 20% of the market, while contract roles make up 6%. These employment type distributions not only reflect current hiring trends but also inform recruitment strategies for CTOs seeking to attract software engineers and senior software developers in Iceland's tech sector.

Time to Hire Distribution for Software in Iceland

How long does it take to hire Software Engineers

The recent analysis of the time to hire distribution for software jobs in Iceland reveals distinctive trends critical for hiring managers. Notably, a significant number of positions, approximately 56, were filled within 30 days, indicating a strong candidate availability in this timeframe. However, hiring takes on average beyond 30 days for 32 roles at the 35-day mark and extends to 22 roles hiring at 40 days. The data suggests that while quick placements are possible, hiring strategies need to account for an increase in time to hire for more specialized roles. Understanding these timelines will equip CTOs and engineering managers with the insights necessary to refine their recruitment strategies within Iceland's technology sector.

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Most popular cities in Iceland to hire Software Engineers

Top 5 cities in Iceland to hire Software Engineers

The software job market in Iceland demonstrates a significant concentration of opportunities within Reykjavik, which accounts for 73% of all job openings analyzed. Following Reykjavik, Kópavogur represents 8% of the openings, while the category of remote jobs comprises 6%. This data underscores the capital's dominance in the software engineering job market, as illustrated in the accompanying chart.

Most sought after technologies in Iceland for Software

Key technologies for Software Engineers

In the competitive landscape of the software job market in Iceland, several technologies emerge as critical to understanding hiring trends. Java stands out with a frequency of 10,875 occurrences, highlighting its dominance in job postings for Software Engineers. Python follows closely, noted for its versatility and application across various domains, with a frequency of 10,977. JavaScript also plays a vital role, attracting significant interest with 8,244 mentions, making it essential for front-end development roles. TypeScript, recognized for enhancing JavaScript's capabilities, boasts a frequency of 5,477, indicating its growing acceptance among developers. The attached chart illustrates the prevalence of these technologies, providing further insights into the preferences within the Icelandic tech sector.

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