By Lilja D. Alfredsdottir, former Minister of Educations, Science and Culture
“Everyone can learn and everyone matters.” This guiding vision is at the heart of Iceland’s education policy. But in recent years the country grappled with a looming teacher shortage, with some schools reporting unfilled posts, particularly in rural and remote areas. By the end of the last decade, the situation was urgent: enrolment in teacher education had been in decline for years and showed little signs of improvement. In 2019, just 165 new teachers graduated.
Policymakers in Iceland realised they needed to respond and launched a five-year initiative to tackle the issue. The result? A 160% increase in teacher graduations compared to the previous five-year average – with 454 teachers graduating in 2022.
This turnaround was achieved by combining political commitment, targeted incentives and national coordination, but it wasn’t easy. These are the policy actions that made a difference:
A National Education Policy with a clear vision
Iceland’s Education Policy 2030, approved by Parliament in 2020, set out a long-term commitment to equity, well-being and teaching excellence. It was co-created with municipalities, universities and educators, and benefited from OECD insights. The policy frames education as a shared responsibility, rooted in student well-being and adaptability to future needs. Crucially, it also reflects a belief that a resilient education system rests on the shoulders of well-prepared, motivated teachers. The state did not shy away from legislating accordingly: the introduction of a new, more flexible Master of Teaching (MT) degree allowed hundreds of former students – who had completed coursework but not a thesis – to graduate and join the profession. Hiring rules were also simplified so that student teachers could be employed without lengthy exemptions.
Incentivising students to enter and finish teacher education
Financial support has also been important. Final-year student teachers can now receive 50% paid practicum placements in schools, helping them build skills with real classroom experience. On top of this, graduation grants were provided to support timely completion. These measures reduced dropout rates and increased entry into the profession, easing the path from student to classroom. At the same time, the government worked with universities, local authorities and unions to raise awareness of the benefits of teaching. A joint promotional campaign helped change the narrative. As a result, teaching is now seen as an attractive, respected career again.
Research and professional growth
Iceland created a dedicated Education Science Fund to boost educational research and innovation. Its mandate is to support interdisciplinary, diversity-aware research to enhance classroom practice. At the same time, universities expanded continuing education for experienced teachers in mentoring and instructional coaching. Together, these measures helped build both capacity and quality across the system.
The result
More teachers are graduating, but the next challenge is keeping them. The first three to five years of a teacher’s career are critical. Iceland is now focusing on mentorship, working conditions and professional growth opportunities to ensure that new graduates don’t just enter the profession, they thrive in it. The Icelandic case proves that when teacher policy is treated as national policy – with clear goals, smart incentives and shared ownership – real change can happen. It is possible to rebuild the teaching workforce at speed without sacrificing quality.
