It is estimated that approximately 8.1% of the Icelandic population 16-66 years old received disability pension in 2017 which is equivalent to almost 17,900 persons. Of those, around 12,400 were inactive, or 69.4%, 28.5% were in employment and about 400 persons unemployed, or 2.1%. Therefore, the activity rate for persons receiving disability pension was 30.6%.

Activity rate of disability pensions beneficiaries by sex

When examining the status of disability pensioners in the labour market, it can be seen that out of the 12,400 who were outside the labour force or inactive, 20.8% were available to work but not seeking job but only 0.6% were seeking job but not available within two weeks.

Disability pensions beneficiaries - Inactive

Of those receiving a disability pension, 2.1% are defined as unemployed. But since the unemployment rate is calculated on the basis of everyone in the labour force, the unemployment rate among them was somewhat higher, or 6.9%.

Disability pensions beneficiaries - Unemployment rate

Disability pensioners in employment were on average 5,100 in 2017. Of these, 62.4% were employed part-time and 37.6% were employed full-time.

Disability pensions beneficiaries - In employment

In year 2017, about 8,900 persons, or 4.0%, claimed to be disabled when asked for their labour market position (main status) in the Icelandic Labour Force Survey. Of these, about 8,400 (94.7%) received disability pension according to tax registers. Most disability pensioners define themselves as having disability, or 47.0%. Second largest group define themselves as employed, or 23.1% of disability pensioners. The third largest group defines themselves as ill or temporarily incapacitated, or 18.3%.

Disability pensions beneficiaries and main status

About the data:
Figures on the number of disability pensioners are based on tax data. Other figures are from the Icelandic Labour Force Survey.