Sustainable development - Social inclusion
From Statistics Explained
- Data from July 2011, most recent data: Further Eurostat information, Database.
This article provides an overview of statistical data on sustainable development in the areas of social inclusion. They are based on the set of sustainable development indicators the European Union (EU) agreed upon for monitoring its sustainable development strategy. Together with similar indicators for other areas, they make up the report 'Sustainable development in the European Union - 2011 monitoring report of the EU sustainable development strategy', which Eurostat draws up every two years to provide an objective statistical picture of progress towards the goals and objectives set by the EU sustainable development strategy and which underpins the European Commission’s report on its implementation.
The table below summarises the state of affairs of in the area of social inclusion. Quantitative rules applied consistently across indicators, and visualised through weather symbols, provide a relative assessment of whether Europe is moving in the right direction, and at a sufficient pace, given the objectives and targets defined in the strategy.
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Overview of main changes
The trends observed in the social inclusion theme since 2000 are in general rather encouraging, especially in terms of reducing poverty. There has been a clearly favourable development in the overall risk of poverty or social exclusion. This is reflected in particular in the number of people at risk of severe material deprivation and the number of people living in households with very low work intensity. There has also been a clearly favourable development in reducing the number of adults with low educational attainment and the difference between men’s and women’s wages (gender pay gap). Furthermore, there has been a moderately favourable development in the risk of monetary poverty, the intensity of poverty, income inequalities and long-term unemployment. However, there have also been several unfavourable developments. The share of working poor has risen, participation in life-long learning has declined, missing the target set for 2010, and further progress is necessary in reducing the share of early school leavers and low reading literacy of pupils.
Main statistical findings
Headline indicator
Risk of poverty or social exclusion
About 2 million people were lifted out of the risk of poverty or social exclusion between 2008 and 2009. This was mainly achieved through reducing the number of people suffering from severe material deprivation
- Between 2008 and 2009 about 2 million people less at risk of poverty or social exclusion
The number of people at risk of poverty or social exclusion is the headline indicator for the social inclusion dimension of the Europe 2020 Strategy, which has set the target of lifting at least 20 million people out of poverty and social exclusion by 2020. The ‘at risk of poverty or social exclusion’ indicator is based on three dimensions of poverty: relative monetary poverty, material deprivation and lack of access to the labour market [1].
In 2009, 114 million persons or 23.1 % of the EU population were at risk of poverty or social exclusion, compared with 116 million in 2008. This reduction continues the trend of the previous four years during which the number of people at risk of poverty or social exclusion decreased on average by approximately 2 million per year. Although this decrease appears encouraging in terms of the possibility of achieving the 2020 target, it is not clear that the trend can be sustained. In particular, the decrease between 2005 and 2009 has been driven mainly by a reduction in the numbers suffering from severe material deprivation, which is not the dominant component of the multidimensional indicator. It is uncertain whether the reduction in material deprivation can continue at the same pace over the coming years or whether there can be a sharper decrease in the number of people at risk of poverty after social transfers. The economic and financial crisis may also introduce a lag effect that has not yet influenced the development of the indicator.
- Between 2005 and 2009 the number of people at risk was reduced in the majority of Member States
Between 2005 and 2009 the share of people at risk of poverty or social exclusion declined in the majority of Member States. However, it rose in seven countries and remained constant in three others. Notably, the countries showing the highest risk of poverty or social exclusion in 2005 had the strongest reductions until 2009. Thus, differences between Member States have reduced slightly.
Monetary poverty and living conditions
Risk of poverty after social transfers
Between 2005 and 2009 the share of people at risk of poverty in the EU decreased very slightly. Women, the young, single people, single parents, and the least educated were most at risk in 2009
- Slight fall in the share of people at risk of poverty in the EU between 2005 and 2009
Between 2005 and 2009 the risk of poverty decreased marginally by 0.1 percentage points. However, the risk decreased only for men, while there was a slight increase in risk for women. The overall decrease over this period comprised a rise between 2005 and 2007 followed by a decline during 2008 and 2009. In 2009, 16.3 % of the population lived at risk of poverty, compared with 16.4 % in 2005. The proportion was higher for women (17.1 %) than for men (15.4 %), possibly because of lower labour market participation, lower wages and higher share of single parents among women. Possible reasons for the change in the share of people at risk of poverty over time include changing wage structures, social transfer policies, and access to the labour market.
- In 2009 young people experienced a higher risk of poverty
Young people below the age of 25 were more at risk of poverty than adults aged 25-64. The risk has actually increased for most age groups between 2005 and 2009, and the overall decrease in poverty risk is only due to the massive risk reduction for people aged 65 and more. This age group is probably less dependent on the labour market and primarily relies on social transfers and own savings. The biggest increase was experienced by 18-24 year olds.
- Poverty risk for single people and single parents increased between 2005 and 2009
In 2009 single households, especially single parents, faced a higher risk of poverty than the population average. Between 2005 and 2009 the risk of poverty rose for both single people and single parents. One in three single parents lived at risk of poverty in 2009. This group experienced the greatest increase in risk of all societal subgroups covered. Because they often depend heavily on social transfers, social transfer policies are an important determinant of the share of single parents at risk of poverty.
- Influence of education on poverty risk grew between 2005 and 2009
There is a clear link between risk of poverty and education level. In 2009, 23.2 % of people with, at most, lower secondary education were at risk of poverty, compared with only 13 % with upper secondary or post-secondary education and 6.7 % with tertiary education. From 2005 to 2009 the at risk rate for people with lower education levels increased at a slower pace compared with those with middle levels of education. For people with higher education levels, the risk of poverty remained constant over this period. The overall risk of poverty fell because of the changing educational composition of the population. These figures show that between 2005 and 2009 education appeared to have a growing impact on poverty risk. It appears that additional demand for labour primarily emerged for better qualified people during this period.
- Wide range of risk level and different development in Member States
There is large variation in poverty risk between Member States. In 2009, the share of the population at risk of poverty ranged from 8.6 % to 25.7 %. Between 2005 and 2009 the share of people at risk of poverty declined in 13 Member States and increased in 13 other Member States. For one country, data are not available for the whole period. There seems to be no correlation between the level of poverty risk in a country and its development between 2005 and 2009.
Severe material deprivation
Between 2005 and 2009 there was a clearly favourable reduction in the share of people suffering from severe material deprivation in the EU. Most Member States have shown a similarly favourable trend
- In 2009 one in twelve people in the EU was severely materially deprived
In 2009 the living conditions of 8.1 % of the EU population were severely burdened by a lack of material resources. Between 2005 and 2009 this share declined substantially by some 26 %. There was a decline in the share of severely materially deprived people in most Member States; however, in seven it rose to above 12.5 %. The share of severely materially deprived people differs widely across Member States, with population shares ranging from 1.1 % to 41.9 %. The Member States with high shares of severely materially deprived people are often countries with a generally lower level of economic development.
Intensity of poverty
The intensity of poverty in the EU was slightly reduced between 2005 and 2009
- In 2009 the income of lower earners was on average 22.4 % below the at-risk-of-poverty line
The intensity of poverty measures how poor people at risk of poverty are on average. It considers how much the poor person’s income is below the at-risk-of-poverty threshold. In 2009, the gap between the poverty threshold (which is set at 60 % of the overall national median equivalised income) and the median income of the poor amounted to 22.4 % The gap decreased by almost one percentage point between 2005 and 2009. However, it started widening again after 2008. Possible reasons for the rise after 2008 include effects of the financial crisis and changes in social welfare systems of the Member States.
Income inequalities
Income inequality within the EU fell slightly between 2005 and 2009
- In 2009 the top quintile disposed of an income five times higher than the lowest quintile
Income inequality is measured here as the ratio of the total income of the richest 20 % of a country’s population to the total income of the poorest 20 %. In 2009 the richest 20 % of the EU’s population earned almost five times more than the lowest 20 % of the population. This represents a slight decrease (-2 %) from its 2005 value and income inequality in the EU was therefore slightly reduced between 2005 and 2009. One possible reason for this could be that the incomes of the rich grew slightly slower than those of the poor between 2005 and 2009.
Access to labour market
Households with very low work intensity
Between 2005 and 2009 there was a clearly favourable reduction in the share of people living in households with very low work intensity in the EU, reflecting favourable trends in most Member States
- In 2009 one in eleven people was living in a jobless household or in a household working at very limited intensity
In 2009, 9.0 % of the population, or 34 million people, in the EU were living in households whose members were working at less than 20 % of their capacity. This means that in these households, either no one was working or its members were working at very low work intensity. Between 2005 and 2009 this share fell by one percentage point or 5 million people.
Most Member States have shown a favourable trend. The share of people living in households with very low work intensity decreased in 20 Member States, with reductions by over 50 % in some of them. However, in six Member States, the share rose between 2005 and 2009. Possible reasons for this increase include the negative effects of the financial crisis on the labour market.
Working poor
The share of employed people in the EU who were at risk of poverty despite being employed increased between 2005 and 2009
In 2009, 8.4 % of employed people in the EU lived in households with insufficient disposable income to lift them out of poverty (‘working poor’). The in-work-at-risk-of-poverty rate increased marginally by 2.4 % between 2005 and 2009. Employed men were at a higher risk of poverty than employed women, however, the gender gap narrowed slightly between 2005 and 2009. Comparison with the overall at risk-of-poverty rate suggests employment halved the likelihood of being at risk of poverty, because the overall rate after social transfer is about twice as high for unemployed people as for employed people.
Longterm unemployment
Between 2000 and 2010 long-term unemployment decreased slightly for the active population in the EU
- Long-term unemployment increased with the recent economic downturn almost returning to the level of 2000
In 2010, 3.8 % of the economically active population had been unemployed for longer than a year. Between 2000 and 2010 the overall long-term unemployment rate in the EU decreased slightly by 5 %. This overall fall, however, masks a changing situation over the decade. The long-term unemployment rate, as well as the general unemployment rate (see the chapter on socioeconomic development), rose between 2001 and 2004 and again, more dramatically, between 2008 and 2010 in response to slower economic growth or a recession.
A comparison of the years 2001 and 2008, which represent minimum levels reached in an economic cycle, suggests that the long-term unemployment rate that was not affected by fluctuations in economic growth decreased by one-third (from 3.9 % to 2.6 %). In 2010 the long-term unemployment rate varied widely across Member States, and ranged from 0.5 % to 6.5 %. However the situation of longterm unemployment is expected to deteriorate from 2010 onwards as the people joining the ranks of unemployed since the onset of the crisis in 2008 meet the criteria of long-term unemployed.
Gender pay gap
Between 2006 and 2009 the gap between women’s and men’s earnings was substantially reduced in the EU
- In 2009 the gender pay gap was at 17.1 %, with large variations across countries
In 2009, women earned 17.1 % less per hour than men. In 2006, the difference was marginally higher at 17.7 %. At the Member State level, values in 2009 ranged from 3.2 % to 30.9 %. The maximum value implies that in some Member States, men earned up to one-third more per hour than women. While in 13 Member States the gap widened, it narrowed in the other 14.
- Several factors contribute to the gap
Because the indicator describes the gender pay gap in unadjusted form, the results can be interpreted in several ways. Factors which may influence the gap’s size are bargaining structures, wage discrimination, supply of affordable childcare, differences between men and women in education, job experience, the sectoral distribution of employment and the degree of wage inequality in general.
Education
Early school leavers
The decline from 2003 to 2010 in the share of early leavers from education and training in the EU may not be fast enough to reach the target of less than 10 % in 2020. In 2010 14.1 % of young people in the EU left school before completing lower secondary education
- Constant progress, but may be too slow to reach the 2020 target
In 2010, 14.1 % of those aged between 18 and 24 years old had not completed lower secondary education and were not in further training. Since 2003 the share of early leavers has fallen steadily by 2.3 % per year on average. Starting from 16.6 % in 2003, progress would have needed to be slightly faster to reach the target of less than 10 % set in the Europe 2020 Strategy. The 2010 target set in the EU Sustainable Development Strategy, also of 10 %, has not been met.
- Eight countries have reached the target
At the national level, the share of early leavers from education and training varied from 4.7 % to 36.8 % in 2010. 22 out of the 27 Member States saw improvement between 2003 and 2010. Eight countries had already achieved the target by 2010.
Adults with low educational attainment
In the EU, the share of adults of working age with at most lower secondary education declined between 2000 and 2010, improving possibilities for personal and professional development
- The prevalence of low educational attainment considerably reduced in all age groups between 2000 and 2010
The prevalence of low educational attainment in the EU differs between age groups. In 2000, 35.6 % of 25 to 64-year-olds had at most lower secondary education; ten years later their share declined to 27.3 %. The respective shares for people aged 65 and over were higher and amounted to 59.9 % in 2010. In both age groups the percentages have steadily fallen. The relative decline was greater for the 25 to 64-year-olds than for the over-65s.
Reasons for this favourable trend include intensified training of adults and, above all, the presence of a cohort effect: younger people, especially younger women, tend to have better education, and as they grow older the prevalence of low educational attainment in a given age group declines.
Lifelong learning
In the EU, participation in lifelong learning did not grow sufficiently between 2003 and 2010 to reach the 2010 target of 12.5 %
- Participation increased until 2005, but has declined since then
The participation of adult working age people in education and training in the EU rose from 2003 to 2005, peaking at 9.8 % in 2005. Between 2005 and 2010, however, participation fell back to 9.1 %. As a result, the average rise between 2003 and 2010 was too slow to stay on track in order to meet the 2010 target of 12.5 %.
- Participation is related to economic development
The decline from 2005 onwards might be due to the economic upswing during this period, making entry into the labour market more attractive than training. As a result, participation rates in lifelong learning may rise again after the economic downturn following the recent financial crisis. However, there are other factors influencing participation in lifelong learning as well, such as the design of social security policies.
Low reading literacy of pupils
Reading literacy performance in the EU worsened between 2000 and 2006. Despite considerable improvement in 2009, the target of reducing low literacy performance by 20 % in 2010 may not be reached
- Prevalence of low reading literacy performance worsened between 2000 and 2006, but improved considerably in 2009. The 2010 target may nevertheless not be reached
Between 2000 and 2006, the share of 15-year-old EU pupils showing only low reading performance in the OECD Programme for International Student Assessment (PISA) increased from 19.8 % to 22.6 %. However, in 2009 the rate fell considerably to 19.6 %. Although this presents a slight improvement on 2000 levels, the target of reducing low reading literacy performance by 20 % compared with 2000 by 2010 seems hard to reach. To meet it, low reading literacy would have to drop by almost 20 % in one year. However, achieving a fast change in trend might be difficult because reading literacy is measured at the end of school age, inferring that policy changes are likely to take several years to show in the indicator.
Many factors may account for the undesirable rise in low reading literacy performance between 2000 and 2006, and the improvement in 2009. Possible reasons range from more rigorous sampling procedures in the PISA process, to increased socioeconomic inequality and migration. Since the rise is widespread among many Member States, it is difficult to attribute it to specific education policies.
Further Eurostat information
Publications
- Sustainable development in the European Union - 2011 monitoring report of the EU sustainable development strategy
- Combating Poverty and Social Exclusion: A Statistical Portrait of the European Union 2010
- The Social Situation in the European Union 2009
Main tables
- Social inclusion
Dedicated section
Methodology
- More detailed information on social inclusion indicators, such as indicator relevance, definitions, methodological notes, background and potential linkages, can be found on page 131-160 of the publication Sustainable development in the European Union - 2011 monitoring report of the EU sustainable development strategy.
Other information
- European Commission Communication COM(2008) 868 - New Skills for New Jobs: Anticipating and matching labour market and skills needs
- Joint Report on Social Protection and Social inclusion 2010, 6500/10, European Council and European Commission
External links
- European Commission - DG Employment, Social Affairs and Inclusion - National Strategy Reports on Social Protection and Social Inclusion 2008-2010
- United Nations - Analysing and Measuring Social Inclusion in a Global Context New York, 2010
See also
Notes
- ↑ The three dimensions (‘sub-indicators’) are presented individually in this report; see the indicators on ‘Risk of poverty after social transfers’, ‘Severe material deprivation’ and ‘Households with very low work intensity’
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