Jobless, students are at risk of poverty

Income distribution statistics indicate that unemployed and students are most commonly at risk of poverty, said Statistics Finland in a press release.

Of those having been unemployed for at least six months during the year, almost 39 per cent were members of households at risk of poverty in 2017. Around 31 per cent of students were members of households at risk of poverty. The at-risk-of-poverty rates between population groups have separated from each other during the 30-year review period, especially during the time after the recession in the 1990s. Employees are very rarely at risk of poverty.

The relative risk of poverty also varies within the population groups. Among unemployed persons there are differences between those who received earnings-related unemployment allowance and those who received unemployment benefits from the Social Insurance Institution.

Of the unemployed who received only earnings-related unemployment allowance during the year, around 15 per cent were at risk of poverty in 2017.

One-half of the unemployed who received only basic unemployment benefits from the Social Insurance Institution were at risk of poverty.

Of those who during the year received both earnings-related unemployment allowance and basic unemployment benefits from the Social Insurance Institution, 38 per cent were members of households at risk of poverty. Over one-half of unemployed at risk of poverty have received basic daily allowance or labour market support and no earnings-related security at all.