In December 2007

In December 2007, 33,678 people (13.5% of the total population) living in Iceland had been born abroad, including children of Icelandic parents living abroad. 19,000 people (6% of the population) held foreign citizenship. Polish people make up the far largest minority nationality (see table on the right for more details), and still form the bulk of the foreign workforce. About 8,000 Poles now live in Iceland, 1,500 of them in Reyðarfjörður where they make up 75% of the workforce who are building the Fjarðarál aluminium plant.[67] The recent surge in immigration has been credited to a labour shortage because of the booming economy at the time, while restrictions on the movement of people from the Eastern European countries that joined the EU / European Economic Area in 2004 have been lifted. Large-scale construction projects in the east of Iceland (see Kárahnjúkar Hydropower Project) have also brought in many people whose stay is expected to be temporary. Many Polish immigrants were also considering leaving in 2008 as a result of the Icelandic financial crisis.[68]

The southwest corner of Iceland is the most densely populated region. It is also the location of the capital Reykjavík, the northernmost capital in the world. The largest towns outside the greater Reykjavík area are Akureyri and Reykjanesbær, although the latter is relatively close to the capital.

Greenland was first settled by some 500 Icelanders under the leadership of Erik the Red in the late 10th century.[69] The total population reached a high point of perhaps 5,000 and developed independent institutions before disappearing by 1500.[70] From Greenland the Norsemen launched expeditions to settle in Vinland, but these attempts to colonise North America were soon abandoned in the face of hostility from the indigenous peoples.[71] Emigration to the United States and Canada began in the 1870s. Today, Canada has over 88,000 people of Icelandic descent.[72] There are more than 40,000 Americans of Icelandic descent according to the 2000 US census.

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