- Data from September 2011, most recent data: Further Eurostat information, Main tables and Database.
This draft article has been updated for the 2012 edition of the ESTAT yearbook and is ready for review – please see the talk/discussion page for more detailed information.
Social inclusion has long been a key part of the European Union's (EU) policies. The overriding goal is to reduce substantially the number of people at-risk-of-poverty or social exclusion, thereby creating a socially inclusive society.
However, as multi-dimensional concepts, poverty and social exclusion cannot easily be measured through statistics. As a result, both monetary and non-monetary indicators have been developed, such as the at-risk-of-poverty rate, the at-risk-of-poverty threshold, the severe material deprivation rate and the share of persons living in households with very low work intensity. Other equally relevant factors should also be considered when analysing social inclusion, for example: access to education and training, health, or housing.
Main statistical findings
At-risk-of-poverty or social exclusion
In 2010, 115.5 million people in the EU-27 lived in households facing poverty or social exclusion. One year before (2009) it was 113.7 million people, equivalent to 23.1 % of the entire population. In 2010 it is estimated on 23.4% (as the data for Cyprus, Ireland and UK are still missing.) The share of the population considered to be at-risk-of-poverty or social exclusion was 0.4 percentage points higher in 2010 than in 2009 and 2.2 percentage points lower than in 2005 (see Table 1). The overall figure for the EU conceals considerable variations between Member States. In Bulgaria and Romania more than two fifths of the population was considered to be at-risk-of-poverty or social exclusion in 2009, while in Latvia and Lithuania the share was above one third; the share was above one quarter in five other Member States, namely Hungary, Poland, Greece, Spain and Portugal. The lowest proportions of the population considered to be at-risk-of-poverty or social exclusion were observed in the Czech Republic, the Netherlands and Sweden; Iceland and Norway also reported relatively low shares of their respective population at-risk-of-poverty or social exclusion. Comparing the trends between 2005 and 2010 it can be observe that there are some drop in at-risk-of-poverty rate was in countries like: Poland, Slovakia, Latvia, Lithuania, Czech Republic, Estonia, Hungary and Cyprus. However Poland, Latvia and Cyprus introduced change in methodology in 2008 marked as break in the series. Bulgaria (2006-2010) and Romania (2007-2010) also noticed decries in at-risk-of-poverty indicator but Bulgaria data also has brake in series due to methodological issues. On contrary poverty grew in Spain (2.1pp), Germany (1.3pp) and Denmark (1.1pp).
The overall risk of facing poverty or social exclusion is made up of three types of risk: being at-risk-of poverty; facing severe material deprivation; and/or living in a household with very low work intensity. A person is considered to be at-risk-of-poverty or social exclusion if they face at least one of these risks – although around 30 % of those persons at-risk-of-poverty or social exclusion within the EU-27 faced a combination of two or even all three of these risks. Figure 1 provides an analysis of those persons at-risk-of-poverty or social exclusion according to the types of risk that they face. In 2009, there were 48.6 million people in the EU-27 living in households that exclusively faced income poverty (but neither severe material deprivation nor very low work intensity), while a further 18.8 million persons experienced severe material deprivation (but neither of the other two risks) and a further 12.5 million persons lived in households with very low work intensity (but faced neither of the other two risks). An additional 27.1 million persons lived in households facing two out of three of these risks, while a further 6.7 million people lived in households where all three of these risks were present.
Figure 2 provides an analysis for each of the Member States of the proportion of the population facing these risks. The analysis has been simplified compared to Figure 1:
- the share of households at-risk-of-poverty includes those living in households that are exclusively at-risk-of-poverty as well as those at-risk-of-poverty combined with either or both of the other two risks;
- the analysis then shows the additional share of the population experiencing severe material deprivation (either as a single risk or combined with living in a household with very low work intensity);
- the final category shows the proportion of the population that lives in households that are exclusively characterised as having a very low work intensity (those that are not at-risk-of-poverty, nor experiencing severe material deprivation).
As such, when summing the three categories shown in Figure 2, the result corresponds to the overall proportion of the population that is at-risk-of-poverty or social exclusion.
At-risk-of-poverty rate and threshold
Figure 3 shows the proportion of the population at-risk-of-poverty (including those that may also face severe material deprivation and/or very low work intensity), as well as the at-risk-of-poverty threshold. The threshold is set by convention at 60 % of the national median equivalised disposable income. This indicator does not measure wealth but is instead a measure of low current income (in comparison with other people in the same country); as such, it does not necessarily imply a low standard of living. At-risk-of-poverty thresholds are often expressed in purchasing power standards (PPS) in order to take account of the differences in the cost of living across countries.
In 2009, 16.3% of the EU-27 population was assessed to be at-risk-of-poverty, with this share ranging from 25.7 % in Latvia to 8.6 % in the Czech Republic. Social protection systems impact upon the share of the population that is considered to be at-risk-of-poverty and different groups in society are more or less vulnerable to monetary poverty. More information on income and poverty is available in an article on income distribution.
Material deprivation
Alongside income-related measures of poverty, a broader perspective of social inclusion can be obtained by studying a range of indicators related to other measures such as material deprivation. An analysis of material deprivation provides a more absolute approach to social inclusion rather than the relative approach used for analysis of income poverty. Material deprivation is based on the affordability of a selection of items that are considered to be necessary or desirable; the analysis distinguishes between individuals who cannot afford a certain good or service, and those who do not possess this good or service for another reason, for example because they do not want or do not need it. The material deprivation rate is defined as those persons who cannot afford to pay for at least three out of a list of nine specific items, while those who lack four or more of these items are considered to be severely materially deprived. About one in every six (17.1%) members of the EU population was materially deprived in 2009; just under half of these (8.1% of the total population) were considered to experience severe material deprivation. The proportion of people that were materially deprived rose to around 30 % of the population in Poland, around 40 % in Latvia and Hungary, and around half or more of the population in Romania and Bulgaria – these five Member States also reported that more than 50 % of their materially deprived population experienced severe material deprivation. Less than one in ten people in Luxembourg, the Netherlands and the Nordic Member States were materially deprived and in these Member States the proportion of the whole population that was severely materially deprived was below 3% (see Figure 4).
Work intensity
Being in employment is generally an effective way to insulate oneself from the risk of poverty. The indicator covering people living in households with a very low work intensity is defined as those people aged 0 to 59 who are living in households where the adults worked less than 20 % of their total work potential during the year prior to the survey; these people are more likely to be exposed to social exclusion. In 2009, 9.0 % of the EU-27 population aged less than 60 lived in households with very low work intensity. Almost one fifth (19.8 %) of the population aged less than 60 in Ireland was considered to be living in a very low work intensity household (see Figure 5); this was, by far, the highest share among the Member States in 2009; double-digit shares were also recorded in the United Kingdom, Belgium, Hungary and Germany. The lowest proportions people living in households with very low work intensity among the EU Member States were recorded in Cyprus, Slovakia, Slovenia and Estonia (less than 6 % of the population); while Iceland and Switzerland recorded even lower shares.
Data sources and availability
EU statistics on income and living conditions (EU-SILC) are the source of information for statistics relating to income, living conditions and social inclusion. More information on EU-SILC, the calculation of household disposable income, as well as the calculation of household size using the number of ‘equivalent adults’, is provided in an article on income distribution statistics.
Context
At the Laeken European Council in December 2001, European heads of state and government endorsed a first set of common statistical indicators relating to social exclusion and poverty that were subject to a continuing process of refinement by an indicators sub-group that is part of the social protection committee. These indicators are an essential element in the open method of coordination to monitor the progress of Member States in the fight against poverty and social exclusion. The social protection committee adopted, in May 2006, a portfolio of overarching indicators complemented by specific indicators on social inclusion, pensions and health.
A European platform against poverty is one of the seven flagship initiatives of the Europe 2020 strategy for smart, sustainable and inclusive growth adopted in 2010. The goals are to:
- ensure economic, social and territorial cohesion;
- guarantee respect for the fundamental rights of people experiencing poverty and social exclusion, and enable them to live in dignity and take an active part in society;
- mobilise support to help people integrate in the communities where they live, get training and help to find a job and have access to social benefits.
One of the headline targets set to measure progress in meeting the Europe 2020 goals is that for the EU as a whole there will be at least 20 million fewer people in or at-risk-of poverty and social exclusion by 2020.
Further Eurostat information
Publications
- 79 million EU citizens were at-risk-of-poverty in 2007, of which 32 million were also materially deprived - statistics in focus 46/2009
- Child poverty and well-being in the EU - current status and way forward, 2008
- Living conditions in Europe – statistical pocketbook
- The social situation in the European Union 2007
- The social situation in the European Union 2005-2006
Main tables
- Income and living conditions (t_ilc)
- Income distribution and monetary poverty (t_ilc_ip)
- At-risk-of-poverty rate after social transfers by gender (tsisc030)
- At-risk-of-poverty rate after social transfers by age group (tsdsc230)
- At-risk-of-poverty rate after social transfers by household type (tsdsc240)
- At-risk-of poverty rate for persons aged 65 years and over (tsdde320)
- In work at-risk-of-poverty rate after social transfers (tsdsc320)
- At-risk-of-poverty-rate, by highest level of education attained (tsdsc420)
- At-risk-of-poverty rate before social transfers by gender (tsisc020)
- Relative median at-risk-of-poverty gap (tsdsc250)
- Inequality of income distribution(tsisc010)
- Income distribution and monetary poverty (t_ilc_ip)
Database
- Income and living conditions (ilc)
- Main indicators (ilc_mi)
- Overarching indicators (ilc_ov)
- Social Inclusion Indicators (ilc_si)
- Income distribution and monetary poverty (ilc_ip)
- Monetary poverty (ilc_li)
- Distribution of income (ilc_di)
- In-work poverty (ilc_iw)
- Material deprivation (ilc_md)
- Material deprivation by dimension (ilc_mddd)
- Economic strain linked to dwelling (ilc_mded)
- Main indicators (ilc_mi)
Dedicated section
- Living conditions and social protection, see: income, social inclusion and living conditions
- Employment and social policy indicators, see: overarching indicators
Other information
- Regulation 1177/2003 of 16 June 2003 concerning EU statistics on income and living conditions (EU-SILC)
- Regulation 1553/2005 of 7 September 2005 amending Regulation 1177/2003 concerning EU statistics on income and living conditions (EU-SILC)
- Regulation 1791/2006 of 20 October 2006 adapting certain Regulations ... in the fields of ... statistics..., by reason of the accession of Bulgaria and Romania
Source data for tables and figures (MS Excel)
External links
OECD statistics on measuring economic performance and social progress
See also
- Education and training introduced
- Employment statistics
- Housing statistics
- Income distribution statistics
- Unemployment statistics