In the first quarter of 2021, the activity rate for 16 to 74 year olds was 76,5%, which is the same as in the first quarter of 2020. Only three times since the beginning of the Icelandic Labour Force Survey, has the activity rate been lower than 77%, in the fourth quarter of 2012 and the first and fourth quarter of 2020. Therefore, the employment rate is also among the lowest ever recorded. The activity rate is the proportion of the sum of employed and unemployed divided by the population.
The number of employed in the first quarter of 2021 was 185,600 persons and the employment rate of the population 70.7%. From the first quarter of 2020 to the same period in 2021, the number of people in employment decreased by 4,700 and its share of the population decreased by 2.5 percentage points. The employment rate is among the three lowest measurements from the beginning and has never been lower in the first quarter.
The employment rate for women was 66.2% and for men 74.8%. The number of employed women decreased by 3,100 and the number of men by 1,500. The proportion of people in employment in the Capital region was 70.6% and outside the Capital region 70.8%. In comparison, 199,200 persons were in employment in the first quarter of 2020 and the employment rate was 73.2%. In that quarter, the employment rate for women was 69.6% and men 76.5%. The employment rate in the Capital region was 74.3% and 71.1% outside that region.
A shorter working week
In the first quarter of 2021, the average number of actual working hours per week was 36.6 hours for those who worked during the reference week, 32.3 hours for women and 39.9 hours for men. Compared with the first quarter of 2020 the average number of actual working hours was 38.0 hours, 33.6 hours for women and 41.6 for men. Whether the reason for decreassed working hours between years is due to Covid-19 or shortening of the working week, those who were at work worked on average 1.4 hours less in a week in the first quarter of 2021 than the year before.
Employed persons worked on average 37.6 hours in a typical week in the first quarter of 2021 compared with 38.1 in the first quarter of 2020, regardless of whether they were at work in the reference week or not.
Absence due to illness
As has been stated, in the beginning of this year changes where implemented to the Labour Force Survey questionnaire, especially with regard to people's working hours and the reasons for absence from work in the reference week, such as illness. In the first quarter of 2021 of people in employment, almost 15,100 persons were out of work for at least a full or half day due to their own illness, accident or temporary disability, or 8.1% of all employed persons. Of women, 10.6% were somewhat absent from work for this reason and 6.2% of men. Of this group, about 11,400 people were somewhat at work during the reference week, or 75.3%. Most were absent from work for one day or 30.8%, while the second largest group was not at work during the reference week or 23.3%.
Unemployment 7.7%
The average number of persons in unemployment in the first quarter of 2021 was 15,400 persons, or 7.7% of the labour force 16 to 74 years old. The unemployment rate for women was 9.1% and for men 6.4%. At the same time, about 3,500 jobs were available in the Icelandic labour market according to Statistics Iceland’s job vacancy survey, or about 1.9% of jobs according to previously published figures. In comparison, 8,700 persons were unemployed in the first quarter of 2020, which means that unemployment has increased by 3.3 percentage points over the period.
Within the age group 16 to 24 years, the unemployment rate was 15.8%, which is a significant increase from the previous year or about seven percentage points. Over the period, unemployment among 25 to 54 year olds increased by 2.8 percentage points, or from 4.3% to 7.1%. The unemployment rate for 55 to 74 year olds increased by 2.4 percentage points, from 2.0% in the first quarter of 2020 to 4.4% in the first quarter of 2021.
Inactivity stays the same
In the first quarter of 2021, 61,700 persons were inactive or 23.5% of the population aged 16 to 74 years. Of women, 34,500, or 27.8%, were inactive and of men, 27,200 were inactive or 20.0%. These figures remain almost unchanged from the first quarter of 2020. Inactive means not being part of the labour force as employed or unemployed.
The majority (18,800) of those inactive in the first quarter of 2021 regarded themselves as retired, or 30.5%. Students were 16,300 (26.5%), 12,900 were disabled (20.9%) and 6,500 individuals were ill or temporarily unable to work (10.6%). About 2,300 of those who were inactive considered themselves unemployed, or 3.7%. These individuals are not considered unemployed in the LFS as they do not meet the criteria in the survey's definition of unemployment. However, the main status of inactive individuals is determined by how they define themselves. About 2,900 persons worked at home or were on maternity leave, or 4.6%, and about 2,000 persons, or 3.2%, defined their status in some other way.
More people telework from home
In the first quarter of 2021, a total of 47.1% of employees aged 25 to 64 years worked remotely from home in their main job. Thereof, 8.9% were employees who usually worked from home while 38.2% sometimes worked from home. This is an increase from the previous year when 36.4% of employees worked to some extent remotely from home in their main job, 4.9% usually worked from home and 31.5% sometimes. Working remotely from home only applies to the main work of individuals and not to domestic work or other work at home.
Actual working hours for employees 25 to 64 years old in the first quarter of 2021 were 37.7 on average per week, 39.0 hours for employees who worked from home and 36.6 hours for those who never work from home. In comparison, employees aged 25 to 64 years worked an average 40.9 actual hours in the first quarter of 2020, those who worked at home worked 41.5 hours and those who never work at home 38.4 hours.
In the first quarter of 2021, employees worked on average 16.8 hours remotely from home or about 43.1% of their actual hours. In the first quarter of 2020, employees who worked part-time at home worked 10.1 hours on average, or 25.1% of the hours worked.