Software Developer Hiring Trends in 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 job market in Iceland has shown notable fluctuations, with a total of 134 jobs posted and 192 closed over the past three months, indicating a more competitive landscape for Software Engineers.
Java and Python are the leading technologies in job postings, highlighting the demand for skilled Software Engineers proficient in these languages, crucial for talent identification and recruitment strategies.
Entry-level positions represent 42% of available roles in the software engineering sector, signifying a robust entry-level talent pool to attract young professionals into Iceland's tech industry.
Reykjavik is the primary hub for Software Engineer openings, accounting for 78% of the market, indicating the concentration of opportunities within the capital city.
The median time to hire for Software Engineers in Iceland stands at 35 days, emphasizing the necessity for hiring managers to adopt efficient recruitment strategies to secure top talent.

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

The Software job market in Iceland has exhibited notable fluctuations over the past 12 weeks, with a peak of 32 new positions posted in week 21, contrasting sharply with a dip to just 3 in week 28. Throughout this period, a total of 134 jobs were posted, while 192 positions were closed, indicating a net decrease in active listings. This significant outflow of roles suggests heightened competition, particularly for Senior Software Developers. When compared to other European countries, the trends in hiring Software Engineers in Iceland highlight a dynamic but challenging environment, necessitating adaptive recruitment strategies for CTOs aiming to attract top talent.

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 Iceland presents a challenging landscape for hiring managers. With a limited number of job openings compared to the size of the available talent pool, Iceland shows a ratio of 3.5 Software Engineers available for each job listing. This contrasts sharply with countries like Germany, which exhibits a balanced ratio due to a robust job market, and Estonia, where the talent pool also closely matches the number of openings. Conversely, Sweden benefits from a diverse talent pool yet faces higher competition due to numerous job opportunities. The current trends suggest that while there are promising Software Developer opportunities in Iceland, CTOs and hiring managers may find it increasingly tough to attract qualified candidates in this competitive environment.

Seniority distribution of Software Engineer job openings in Iceland

Seniority Distribution of Software Engineering Jobs in Iceland

In Iceland's software engineering job market, the distribution of seniority levels reveals valuable insights for hiring managers. Entry level positions comprise 42% of the total job offerings, followed closely by Mid-Senior level roles at 39%. Associate positions, although less prevalent, represent 3% of the market. This seniority distribution indicates a robust entry-level talent pool, which is crucial for those considering recruitment strategies for CTOs in Iceland's tech sector.

Preferred employment type for Engineering roles in Iceland

In the Icelandic software engineering job market, full-time positions dominate, comprising 75% of available roles. Part-time employment accounts for 20%, while contract positions represent 5% of the market. This distribution highlights the strong preference for full-time commitments among employers, signaling a robust demand for dedicated software professionals.

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 reveals significant insights into the recruitment landscape. Notably, the majority of candidates are hired within the 30 to 35 days range, with 45 candidates taking 30 days and 30 candidates taking 35 days to complete the hiring process. This trend indicates a competitive hiring environment, particularly for Software Engineers, where prompt recruitment strategies may be crucial. Conversely, there are fewer hires beyond the 70-day mark, suggesting that prolonged hiring periods are less common. For hiring managers in Iceland's tech sector, understanding these timeframes can inform recruitment strategies and align expectations with the current market trends for Software Developer opportunities.

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Most popular cities in Iceland to hire Software Engineers

Top 5 cities in Iceland to hire Software Engineers

In Iceland, the distribution of Software Engineer job openings reveals a significant concentration in Reykjavik, which accounts for 78% of the total job market. Following this, the city of Kópavogur holds 8% and the category of remote positions comprises 7%. This concentration in the capital emphasizes the importance of Reykjavik as a central hub for Software Engineer opportunities in Iceland, as illustrated in the accompanying chart.

Most sought after technologies in Iceland for Software

Key technologies for Software Engineers

In examining the software job market in Iceland, certain technologies emerge as predominant choices among employers. Notably, Java and Python lead the way, with frequencies reaching 10,261 and 6,571 respectively, indicating a robust demand for professionals skilled in these languages. Additionally, JavaScript follows closely with a usage frequency of 8,026, highlighting its importance in web development. Other significant technologies include PHP, used in 5,625 job postings, and SQL, appearing in 4,800 listings. These trends, illustrated in the accompanying chart, provide critical insights for hiring managers seeking to align their recruitment strategies with market demands.

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