Finland has been deemed the happiest country in the world for the fourth year running, nevertheless, in this country there are people who struggle for survival. In spite of all efforts, the number of people with low income or at risk of poverty is still high, although it has decreased slightly in 2020 compared to the previous year.
In Finland, the low-income earners (persons at risk of poverty) are considered those whose household's disposable money income per consumption unit is below 60% of the median income of the whole population. The median for household-dwelling units' disposable cash income (incl. capital gains) was EUR 26 227 per consumption unit in 2020. A household-dwelling unit was recorded as being at risk of poverty, when its income was at most EUR 15 736 (60% from median) per consumption unit in 2020.
According to the report published by Statistics Finland in December 2021, there were 678 800 low-income earners (persons at risk of poverty), or 12.5% of the dwelling population in 2020. A single person was statistically poor when his or her monthly income was € 1 277 or less. In a family of two adults and two children, the poverty line was 2 681 euros per month. The number of children at risk of poverty was 114 300 (11.1%) in 2020.
TABLE: At risk of poverty thresholds (poverty line) for different households, 2020
| Households | 2020/year | 2020/month |
|---|---|---|
| One-person household | 15 320 | 1 277 |
| 1 adult, 1 child less than 14 years old | 19 920 | 1 660 |
| 1 adult, 2 children less than 14 years old | 24 510 | 2 043 |
| 1 adult, 3 children less than 14 years old | 29 110 | 2 426 |
| 1 adult, 1 child under 14 years old, 1 child at least 14 years old | 27 580 | 2 298 |
| 2 adults | 22 980 | 1 915 |
| 2 adults, 1 child under 14 years old | 27 580 | 2 298 |
| 2 adults, 2 children under 14 years old | 32 170 | 2 681 |
| 2 adults, 3 children under 14 years old | 36 770 | 3 064 |
| 2 adults, 4 children under 14 years old | 41 360 | 3 447 |
| 2 adults, 1 child at least 14 years old | 30 640 | 2 553 |
| 2 adults, 2 children at least 14 years old | 38 300 | 3 192 |
| 2 adults, 1 child less than 14 years old, 1 child at least 14 years old | 35 240 | 2 937 |
| 3 adults | 30 640 | 2 553 |
| 4 adults | 38 300 | 3 192 |
| Disposable cash income per consumption unit, median | 25 530 | 2 128 |
| Disposable cash income (incl. capital gains), median | 26 227 | 2 186 |
It has to be mentioned that the number of low-income earners, as well as, the share of children at risk of poverty decreased in 2020 compared to the year before. The risk of poverty decreased also in all other age groups except among people in their 20s. The at-risk-poverty rate of persons aged 20 to 23 grew from 32.4% (2018), 33.3% (2019) to 35% (2020). Thus, the number of people at risk of poverty has been growing for the third year in a row at this age group.
Based on this data captures the image of the difficult economic situation of young people. It is becoming increasingly difficult for young people to get work, in addition, there are many young people in Finland who are on the margins of society or at the risk of social exclusion. For example, according to Finnish Institute for Health and Welfare survey, there were 48 000 young people who were not in education, work or conscription in 2019. Most of them, 37 000, were 20-24 years old.
In relative terms, the risk of poverty decreased most among persons aged over 80. The risk of poverty among the oldest age group: aged 88 or over, decreased by 3.5 percentage points. Nevertheless, despite the decline, the at-risk-of-poverty rate of this age group is the highest one after young people, 26.9% (19 775 persons).
The social support systems are the bailout of many low-income earners. There were more people completely dependent on basic social security: the number of those completely dependent on basic social security grew in 2020. There were 261 500 people completely dependent on basic social security, while their number was 235 400 in 2019. Of children, 56 200 were completely dependent on basic social security, while the figure was 52 000 in 2019.
More information can be found at Statistics Finland website and Finnish Institute for Health and Welfare website.
See also: Wage and salary workers in Finland: Earnings Per Month 2020, Hourly Earnings 2020
Published 18.01.2022, FINREPO