Iceland’s Statistics Office admits to miscounting 5,000 individuals on maternity leave as public sector employees

In a significant miscalculation, Iceland’s Statistics Office wrongly counted 5,000 individuals on maternity leave as public sector employees. This error has led to an inflation of the official data regarding state employees, which was disseminated in July.

Prime Minister Bjarni Benediktsson highlighted this mistake following a specialized review of the statistics he requested when the employment data was released. He stated that the overestimation is closely linked to the extended duration of maternity leave, which he argued emphasizes the necessity for accurate public data.

Bjarni pointed out, “Over the past year, nearly 90% of job growth has actually occurred in the private sector, contrary to claims often made in public discourse. The relative growth rate in both the private and public sectors is roughly the same—around 1%.” He expressed concern about the implications of inaccuracies in public data, particularly when they are used to support discussions on government expansion, which he believes lacks a factual basis. He also noted that economic growth might be underestimated, potentially misrepresenting the health of the economy.

The Prime Minister urged both the media and the public to hold the government accountable regarding public sector expansion. He emphasized, “Fiscal restraint in government operations is a stated priority for us to support the ongoing reduction of inflation and interest rates. If the data does not withstand scrutiny, then neither should the discussions based on it.”

At the time of this report, the results of the specialized data review Bjarni initiated were not available on the Statistics Office’s website.