Statistics on living conditions: documentation of statistics

Data description (SIMS 3.1)

The statistics on living conditions describe the living conditions of the household population from different perspectives, such as risk of poverty or social exclusion, subjective well-being and livelihood, health and housing by population group in Finland. Data are collected yearly with the income and living conditions survey. These sample data are also used for the production of the income distribution statistics and Finland's data for Eurostat's EU-SILC survey. Some of the data published in the statistics are collected only at set intervals, but some yearly.

Concepts and definitions (SIMS 3.4)

Low work intensity

Persons with low work intensity are persons who belong to a household whose working-age members worked under 20 per cent of their possible total labour input during the year. In the calculation, the months worked by working-age persons are proportioned to the theoretical maximum number of months in gainful employment of working-age members of the household. Persons of working age include persons aged 18 to 64, excluding students aged 18 to 24, persons who have reported themselves as primarily pensioners, persons who receive pension income (excl. survivors' pensions and disability pensions, private pensions as property income) and persons aged 60 or over who are not at work at all and whose household's main source of income is pensions (excl. survivors' pensions, and disability pensions, private pensions as property income). The indicator is not formed at all for households that consist only of underage children, students aged under 25 or persons aged 65 or over. In the calculation, part-time work is changed to correspond to full-time work based on hours worked per week. The definition of low work intensity was revised at Eurostat in 2021. Statistics Finland's statistics on living conditions release data on low work intensity with the new definition starting from the releases for the statistical reference year 2020. Data according to the new definition are available in database tables starting from 2015. Time series data according to the old definition from 2005 to 2019 are available in the table archive. The definition change has an impact on the indicator describing at risk of poverty or social exclusion. According to the old definition, persons with low work intensity are persons who belong to a household whose working-age members worked under 20 per cent of their possible total labour input during the year. In the calculation, the months worked by working-age persons were proportioned to the theoretical maximum number of months in gainful employment of working-age members of the household. According to the old definition, persons aged 18 to 59 excluding students aged 18 to 24 were included in working-age persons. The indicator was not formed at all for households that consisted only of underage children, students aged under 25 or persons aged 60 or over. In the calculation of the old definition, part-time work was changed to correspond to full-time work based on hours worked per week.

Overcrowding

A household's dwelling is overcrowded, if the number of available rooms is under the number which would be necessary based on its composition. The imputed need for rooms is affected by the number of household members, and for persons aged over 18 whether they live as a couple, and the gender of those aged 12 to 17. In addition to one separate room, a household needs at least one room per two persons. Exceptions are persons aged over 18 living alone, and persons aged 12 to 17 of different genders for whom one room is needed per person.

Person with disability

A person with disability is someone who in at least one of the following basic actions has a lot of difficulties or cannot do it at all: seeing (even if wearing glasses), hearing (even if wearing a hearing aid), walking or climbing steps, remembering or concentrating, self-care, such as washing all over or dressing, and communicating in one's own language so that one understands others and is understood by others. The question series is a short set of the indicators of functioning of the Washington Group on Disability Statistics operating under the United Nations Statistical Commission, and the definition of disability complies with the recommendation given by the group.

Risk of poverty or social exclusion

The risk of poverty or social exclusion refers to the population who is either a member of a low income household, has severe material and social deprivation or lives in a household with low work intensity. The so-called AROPE indicator (At Risk of Poverty or Social Exclusion) that measures the risk of poverty or social exclusion is part of the monitoring of the targets of the EU 2030 strategy. The low income household sub-indicator published by Statistics Finland as part of the indicator for at risk of poverty or social exclusion is based on the internationally comparable income concept (disposable monetary income excl. sales profits). The concept corresponds to the income concept used by Eurostat in the EU-SILC statistics but differs slightly from it as concerns fringe benefits of wages and salaries. They are included in income in the national statistics but not in the EU-SILC except the car benefit. The deviation causes a small difference to the at-risk-of-poverty rate and as a result, to the risk of poverty or social exclusion, compared to the figures published by Eurostat. The reference period of the indicator for at risk of poverty or social exclusion is the income reference year in Statistics Finland's publications. Of the three components of the indicator, low income and low work intensity refer to the income reference year whereas severe material and social deprivation refers to the data collection year which is the year following the income reference year. On Eurostat's web pages the indicator is published according to the survey year. Among the components of the indicator for at risk of poverty or social exclusion, Eurostat revised the definitions of severe material and social deprivation and low work intensity in 2021. Statistics Finland's statistics on living conditions release data on those at risk with the new definition starting from the releases for the statistical reference year 2020. Data according to the new definition are available in database tables starting from 2015. Time series data according to the old definition from 2005 to 2019 are available in the table archive.

Severe material and social deprivation

The indicator for material and social deprivation describes shortages related to basic needs which arise from the household not being able to afford them. There are 13 basic needs. If a household has a shortage of at least seven of them, it is considered to experience severe material and social deprivation. Some of basic needs are at household level and some at individual level. Shortages of basic needs measured at the household level include: • capacity to being confronted with payment arrears (on mortgage or rental payments, utility bills, hire purchase instalments or other loan payments), • capacity to face unexpected expenses, • the household cannot afford a car • the household cannot afford a protein-rich meal every second day • the household cannot afford one week's annual holiday away from outside home, • the household cannot afford to keep their home adequately warm, • the household cannot afford to buy new furniture to replace broken ones. At individual level, shortages of basic needs are as follows: • no access to the Internet when needed, • cannot afford to buy some new clothes to replace worn-out clothes, • cannot afford two pairs of properly fitting shoes, • cannot afford to spend a small amount of money each week on one's own expenses, • cannot afford to have regular leisure activities outside home • get together with relatives or friends for a coffee or meal at least once a month. The components describing individual-level deprivation are collected in Finland for one household member (the so-called target person). If the respondent experiences shortage in some basic need, it is assumed to apply to the entire household. The indicator for severe material and social deprivation has been revised at Eurostat in 2021. Statistics Finland's statistics on living conditions release data on material and social deprivation with the new definition starting from the releases for the statistical reference year 2020. Data according to the new definition are available in database tables starting from 2015. Time series data according to the old definition from 2005 to 2019 are available in the table archive. The change in the definition has an impact on the indicator describing at risk of poverty or social exclusion. Previously, the indicator was known as severe material deprivation. According to the old definition, deprivation of basic needs included experiencing payment difficulties on housing expenditures and loans, difficulty coping with unexpected financial expenses, the household cannot afford a telephone, washing machine, television, car, protein-rich meal every other day, one week's holiday per year outside home or keep their home warm enough. Measured by the old indicator, persons whose household experienced deprivation measured by at least four indicators out of nine were considered severely materially deprived.

Under-occupied dwelling

A household has at least one room more than it needs based on its composition (see the definition for overcrowded dwelling for details on calculating the room need).

Institutional mandate (SIMS 6)

Quality assurance (SIMS 11.1)

Release calendar (SIMS 8.1)

User access (SIMS 8.3)

Confidentiality - policy (SIMS 7.1)