Social inequality

The indicators of the social inequality basket reflect, for their part, economic inequalities and the situation of people in an economically weaker position. In the light of the indicators, the growth in income disparities and the share of low-income earners seems to have come to a halt in the past ten years. On the other hand, the differences are great compared to, for example, the years before the turn of the millennium. In 2019, the share of those at risk of poverty and social exclusion in the Finnish population was 16 per cent in total. This indicator also suggests that the development has remained fairly stable over the past ten years. As regards these indicators describing economic inequalities, the latest data are from 2019, which means that the possible impact of the coronavirus pandemic on the indicators cannot yet be examined. On the other hand, the number of people living on long-term social assistance increased slightly in 2020. The biggest change was seen in the number of young adults receiving long-term social assistance. In addition, the indicators of the social inequality basket also reflect the support Finland provides globally to people in a disadvantaged position. In this respect, the figures deteriorated slightly in 2020.

Inequality is a global problem. Growth of inequality particularly challenges socially sustainable development, while it also strongly affects other areas of sustainable development. Inequality is manifested in aspects such as income disparities, health, social exclusion, perceived wellbeing and life satisfaction, education, and confidence in the future and personal opportunities for influence. The factors behind inequality may be an outcome of long-term trends or caused by unexpected, sudden events. The different dimensions of inequality are also strongly interconnected and have an impact not only on people’s welfare, finances and employment but also on social peace.

Inequality is a global problem and is also prevalent in Finland. Growth of inequality is a particular challenge for socially sustainable development, but it also has a strong impact on other areas of sustainable development.

The indicators suggest that the sharp increase in income differences and growth in the share of persons living on low incomes has come to a halt and, in certain areas, begun to reverse itself. On the other hand, the differences continue to be big compared to the early 1990s.