Fiscal Analysis

Sweden: What Labour Market Exclusion Costs the State

What it costs the state in disability and sickness benefits when people are kept out of work, compared across European countries.

€8.4bn
Spent on disability and sickness benefits
1.5%
Benefit Expenditure As share of GDP

Country Profile

As share of GDP1.5% of GDP

Direct benefit payments

Försäkringskassans årsredovisning 2024, tabell 2 — sjukersättning, aktivitetsersättning and sjukpenning · 2024

€8.4bn

→ Disability pension

Försäkringskassans årsredovisning 2024 — sjukersättning and aktivitetsersättning (SEK 45.4bn) · 2024

€4.0bn

→ Sickness benefit

Försäkringskassans årsredovisning 2024 — sjukpenning (SEK 50.9bn) · 2024

€4.4bn

Local currency: SEK 96.3bn

Per working-age adult

€1,281

Context

Covers sjukersättning (long-term disability benefit), aktivitetsersättning (disability benefit for younger people) and sjukpenning (sickness benefit). In 2024, 237,082 people were paid sjukersättning and 40,144 aktivitetsersättning. A reform on 1 July 2008 tightened the criteria for sjukersättning and abolished the time-limited version (ISF, 2023).

Methodology

Public cash benefits for disability and sickness, 2024. Försäkringskassan's figures include state old-age pension contributions on these benefits. Employer sick pay, lost tax revenue, healthcare and employment-programme costs are not included. Converted at the Eurostat 2024 average rate (SEK 11.4325 per EUR). Share of GDP uses Eurostat GDP for 2024; per working-age adult means per person aged 15–64 (Eurostat, 1 January 2024).

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