Concepts: L

The concepts described on these pages are words and expressions used in statistics with a specific, limited meaning. In everyday speech the word may have a different meaning. The same concept may mean a different thing in different sets of statistics. For example, the concept “unemployed” has three different definitions.

In connection with each definition you can find information about which sets of statistics use the concept. If you are looking for statistical figures, go from the definition to the statistics page.

Land use, land-use change and forestry sector in the national greenhouse gas inventory.

Changes in carbon stocks, such as the growing stock and soil, and methane and nitrous oxide emissions from drained soil, for example, are reported in the sector in question, but nitrous oxide emissions from agricultural land are reported in the agriculture sector.

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Labour costs describe all costs incurred by an employer from the employment of labour. Labour costs are usually presented as costs for an hour worked. Costs arising from work premises, commuting or untaxed daily allowances are not included in labour costs.

Total labour costs are obtained by deducting employer's subsidies from the sum of labour cost items. Employer's subsidies are intended for full or partial financing of costs arising from direct compensations paid by the employer. Such subsidies comprise employment subsidies and training compensations paid to employers.

In the labour cost index, labour cost items are grouped as follows:
- remuneration exclusive of one-off pay components
- one-off pay components
- social security costs

In the labour cost survey, labour cost items are divided into the following main groups:
- direct earnings
- one-off pay components
- remuneration for days off
- contributions to personnel funds
- costs of fringe benefits and company products
- social security costs
- training costs
- other labour force costs

Direct earnings refer to wages and salaries paid for hours worked in each pay period. Direct earnings comprise
- direct compensations paid on the basis of hours worked, output produced or amount of work performed
- compensations for overtime, shift work and the like
- additional bonuses and compensations paid regularly in each pay period.

One-off pay components refer to items that are not paid regularly in each pay period. Such bonuses that are often paid only once a year include performance-based bonuses and holiday pay, and seniority increments paid in some hourly paid fields. Payment of one-off pay components can also be based on collectively bargained agreements.

Pay for days off refers to compensations paid for statutory, agreement-based or voluntarily granted leaves, national holidays or other paid days of leave. Typical items of this group are pay during annual holiday entitlement, monthly paid employees' pay during national holidays, hourly paid employees' compensation during national holidays and days of leave in compensation of shortened working hours.

Payments to personnel funds refer to the sums enterprises may annually contribute to their employees' saving systems, such as personnel funds.

Costs of fringe benefits and company products include all costs incurred by an employer from the goods and services it provides for to its employees. Such goods and services include e.g. company car and subsidised meals, incentive stock options and personnel's recreational and social activities. Own personnel's pay is not included.

Social security costs refer to the sum employers pay for the social security benefits of its employees. Such statutory, agreement-based or voluntary payments include employment pension, social security and unemployment insurance contributions. Additionally, this group comprises as imputed social security funding items pay during illness and parental leave (net, i.e. less compensations paid to the employee by the Social Insurance Institution) and occupational health care costs (likewise, net), as well as compensations arising from the termination of an employment relationship.

Training costs include e.g. costs of professional training services, costs of course participations, fees of instructors hired from outside the enterprise and payments to organisations arranging training. By contrast, pay for the participants during training is not counted as training costs but as pay for hours worked.

Other labour costs include e.g. costs arising from protective and working clothes and from the procurement of labour.

Employer's taxes paid on the basis of the sum of wages and salaries or the employed labour force that the labour cost concept of the European Union contains do not exist in Finland.

The concept of labour costs partly equals the national accounts concept of compensation of employees but exclusive of e.g. occupational health care, training and recruitment costs.

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Temporary intentional interruption of work by the employee or employer party, refusal to work, slow down or other pressure measures in order to attain some objective.

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Labour input describes development in the cost of labour in the construction industry relative to a base year. It is monitored against average hourly earnings for regular working hours in the construction industry, indirect labour costs complying with collective agreements, and estimated development of earnings.

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Labour productivity is calculated by dividing gross domestic product (i.e. value added) or output by the number of hours worked to achieve it. According to the neoclassical economic theory, economic growth is born out of growth in productivity of labour.

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In the Labour Force Survey, a person is defined as laid off if he or she has been completely absent from work in the survey week (also from a secondary job) and in the interview reports temporary lay-off as the reason for the absence. The person can be laid off either for a fixed period or for the time being. In the Labour Force Survey, a laid-off person may be defined either as employed, unemployed or economically inactive (http://tilastokeskus.fi/til/tyti/tyti_2013-08-20_men_006_en.html).

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There are several definitions for this concept

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A landfill is a waste treatment site for the final disposal of municipal waste, hazardous waste or other waste, such as waste stone. At the decision of public authorities, a site for long-term storage of waste can also be designated a landfill.

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Information on language is obtained from the Population Information System. At the same time as parents register the name of their new-born, they also indicate the child's mother tongue. That language is retained in the Population Information System unless it is changed upon separate application.

Languages are classified by the Population Register Centre according to the ISO 639 standard. The future language classification ISO-639-1 was already adopted for the 2000 population census.

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In the statistics on providers of education and educational institution the language of teaching is based on a public authority's decision about it. An educational institution may also provide teaching in a language other than that stated in the decision.

Languages of teaching of educational institutions are grouped as follows:
1 Finnish
2 Swedish
3 Finnish/Swedish
4 English
5 Sami
9 Other.

The language of teaching of an educational institution is Finnish/Swedish when the educational institution provides teaching in both languages.

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Late neonatal mortality refers to the number of deaths which occur at the age of 7 to 27 days relative to the live births during the statistical year.

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There are several definitions for this concept

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Permission from the court of final appeal to appeal against the decision of a lower court.

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Legal aid gives individuals the possibility to obtain assistance for legal matters fully or partially at the expense of the state. Legal aid covers all legal matters.

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Legal aid provided by a private practitioner refers to legal assistance provided by an attorney-at-law or other private lawyer.

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Legal aid provided by the Legal Aid Office refers to legal aid, which has been given by a state Legal Aid Office.

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Legal form identifies the legal status of a legal person. The classification of legal forms is based on the company forms of the Trade Register and on the requirements of taxation legislation. The legal forms of enterprises and corporations are recorded in the Business Information System.

Statistics Finland's classification of legal forms is based on this system and on the Tax Administration's coding of legal forms. Some of the Tax Administration's categories have been combined in Statistics Finland's classification.

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A legal local unit is a part of a legal unit that is located at a certain address. A legal local unit can operate in several different industries. In practice, a legal local unit is the same as a local unit.

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A legal unit is a corporation, or an organisation registered for conducting business. A legal unit is identified with a Business ID.

Legal units are, for example, limited companies, private practitioners of trade, co-operative societies, state-owned companies and foundations.

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There are several definitions for this concept

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There are several definitions for this concept

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Total length of main and secondary lines excluding sidings.

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There are several definitions for this concept

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The occupancy rate and standard of equipment of the dwelling together describe the level of housing of the household-dwelling unit.

The classification of occupancy rate:
- Spacious: a household-dwelling unit of one to five persons with room units at its disposal exceeding the number of its members by at least three (kitchen is not included in the number of rooms).
- Overcrowded: more than one person per room unit (kitchen is not included in the number of rooms).
- Normal: not belonging to the above categories.

(Kitchen is not included in the number of rooms from 1989 onwards.)

Standard of equipment:
- High standard of equipment: the dwelling has running water, sewage, hot water, toilet, washing facilities (shower, bathroom or sauna) and central or electric heating.
- Low standard of equipment: the dwelling lacks washing facilities and/or central or electric heating.
- Substandard level of equipment: the dwelling lacks one of the following facilities: running water, sewage, hot water or toilet.

As from 2005 only "High standard of equipment" and "Other or unknown level of equipment" are used.

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Liabilities is capital that external parties invest in the enterprise. A liability always involves a repayment obligation. The repayment period for current liabilities is at most one year and that of non-current liabilities is over one year. The main source of liabilities for an enterprise is banks. Different forms of lending include short and long-term credits, overdrafts on current accounts, and intermediated credits.

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Liabilities (Debts) describe the amount of debt per person in a household-dwelling unit at the end of the year (31.12.) Included are loans and credits granted by credit institutions and financial corporations, financial services offices, as well as other common lenders. The debts comprise housing loans and student loans guaranteed by the Finnish Government or the Åland Provincial Government. The debts also comprise loans granted by credit institutions and financial corporations, as well as loans exceeding EUR 1,700, granted by lenders other than credit institutions and financial corporations, the purpose of use of which is other than the aforementioned housing loan or student loan.

The debts are grouped according to their purpose of use as follows:
1. Housing loans
2. Student loans
3. Debts charged on a source of income
4. Loans taken up for the purpose of acquiring income
5. Other liabilities

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Liabilities to other than credit institutions and central banks.

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Transportation of people or goods against a fee (for hire or reward). Practising of the transportation is subject to a permission from a licensing authority.

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Lower third-cycle degree obtained at university.
Comment:
A licentiate degree is the second highest university degree as an intermediate qualification in third-cycle education. Exceptions are the fields of medicine, dentistry and veterinary science, where a licentiate degree is a master’s degree.

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The number of years that a person of a given age would live provided that the rate of mortality remains unchanged.

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Lifelong Learning (LLL) is defined as encompassing all learning activity undertaken throughout life, with the aim of improving knowledge, skills and competences, within a personal, civic, social and/or employment-related perspective.

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Light four-wheel vehicle (L6e) is a power-driven four-wheeled vehicle with unladen mass of no more than 350 kg disregarding the mass of batteries of an electrically-powered vehicle and with the maximum design speed of 45 km/h. The maximum cylinder capacity of a vehicle of L6e category is 50 cc when driven by a positive ignition engine, or maximum power output of 4kW when driven by an internal combustion engine or by an electric motor.

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Goods road vehicle with a gross vehicle weight of not more than 3 500 kg, designed, exclusively or primarily, to carry goods.

Included are vans designed for and used primarily for transport of goods, pick-ups and small lorries with a gross vehicle weight of not more than 3 500 kg.

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This item comprises Finnish and foreign notes and coins, cheques and bankers' drafts as well as other similar payment instruments. The item also comprises claims on central banks repayable on demand.

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A limited company can be founded by one or more natural or legal persons. The share capital of a private limited company must be at least EUR 2,500 and that of a public limited company EUR 80,000. The shareholders are not personally responsible for the company's liabilities. A limited company is entered into the Trade Register.

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A limited partnership has both a liable and a silent partner. There may be one or more of each. Silent partners are only responsible for the partnership's liabilities up to the amount of capital they have invested into the partnership. Liable partners are liable for all debts of the partnership with their entire assets. The sizes of the investments of silent partners and the method for calculating their shares of profits must be recorded in the articles of incorporation of the partnership. A limited partnership is entered into the Trade Register. The name of a limited partnership must disclose its form either as an abbreviation or as an unabbreviated word.

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Liveborn is the term for a newborn who breaths or shows other signs of life after birth. Only liveborn children of women living permanently in Finland are taken into account in the population statistics.

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Maximum weight of goods declared permissible by the competent authority of the country of registration of the vehicle (difference between gross weight and own weight).

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Maximum volume available in the vehicle (e.g. measured in cubic metres) for the carriage of goods.

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Weight of load relative to the load capacity of a lorry.

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Liabilities - (Advances received + Accounts payable + Adjusting entries for liabilities + Other liabilities) from the balance sheet of the municipality/joint municipal board.

The loan stock of a municipality or joint municipal board refers to interest-bearing liabilities.

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Loans are bilateral credit agreements between the lender and the borrower and are non-marketable. Long-term leases are also included in loans. This type of financial leasing is a normal procedure in leasing ships and large machinery. Repurchase agreements on securities, ie repos, are recorded under this item in accordance with international accounting standards, although they are not loans from the legal point of view. Repo transactions correspond to collateralised loans in which securities originally owned by the seller are used in security for the loan. Private placement bonds also conceptually belong to the loan category.

As a result of the new statistical standards (ESA 2010), the line between deposits and loans changes so that there can no longer be loans between monetary financial institution (MFIs) - items previously recorded as loans between MFIs will now be recorded as deposits.

Loan drawdowns and redemptions are not separately compiled for Finland's BOP statistics, but loans are reported in the surveys as net changes (drawdowns less redemptions). Objects rented in financial leasing are recorded under goods trade and the rent under loans. Payments of rent are entered into redemptions and interest under interest on other investment.

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Credits extended to the public and general government, as well as receivables of a similar nature.

The public includes households, enterprises, non-profit corporations, insurance corporations and other financial institutions except credit institutions.

General government includes the State, municipalities, joint municipal authorities, the regional government of the Åland Islands, employment pension institutions and other social security funds.

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Loans and other receivables (finrep - reporting)
The item includes loans, deposits between financial institutions and advance payments. The data are reported as nominal values.

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Loans granted from government funds for specific purposes, such as farm loans, loans for the utilisation of land, loans for rural industries, loans for small industries, etc.

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The investment item "Other loans receivable" + the items short- and long-term loans receivable under current assets from the balance sheet of the municipality/joint municipal board.

Bonds are not included in loans receivable in statistics on financial statement estimates.

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Loans taken up for the purpose of acquiring income are debts incurred in gaining taxable income. The income may be regular income, such as rental, interest or dividend income. The income may also be based on capital appreciation, e.g. if the taxpayer acquires a commercial property or a plot of land for investment purposes.

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There are several definitions for this concept

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Enterprises in the same country owned by the same controlling enterprise belong to a local enterprise group. Foreign affiliates and those domestic affiliates where the ownership chain goes through foreign countries are not included in the local enterprise group in question.

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A marketable money market promissory note issued by local government.

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There are several definitions for this concept

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The local kind-of-activity unit ID identifies a local kind-of-activity unit. The ID is assigned in Statistics Finland's Register of Enterprises and Establishments. It is a 9-digit number in which the last two digits are control numbers.

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A local kind-of-activity unit is a sub-unit of a legal local unit, and is derived by breaking down the legal local unit according to its industries. Thus, a local kind-of-activity unit only operates in one industry. In practice, a local kind-of-activity unit is the same as an establishment.

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A local unit is a sub-unit of an enterprise which is derived by dividing the enterprise into its activities located at different addresses. An enterprise's activities located at a certain address. A local unit can operate in several different industries.

The definition is based on an EU regulation concerning statistical units (EEC 696/93) and on a regulation concerning Business Registers (EC 177/2008).

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There are several definitions for this concept

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There are several definitions for this concept

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Location municipality discloses the municipality in which an enterprise's establishment is geographically located.

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The employer locks out the workplace and interrupts payment of wages and salaries.

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A railway vehicle with own engine for traction and pushing of trains.

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Distance of one kilometre covered by the locomotive.

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In the tourism statistics of the EU (Eurostat) trips are broken down by duration into two main categories: short trips and long trips. Short trips consist of 1-3 nights and long trips of four or more nights. The maximum duration of a trip is 12 consecutive months.

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Illnesses for which the respondent receives regular care or for which he or she is monitored by a physician or the health care in general. It can also be a question of allergy.

Long-term here refers to a period of at least six months: the person has been bothered by the problem for at least six months at the time of interview, or it will probably continue so long that its duration will be at least six months.

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Long-term low-income earners are those who have belonged to low-income households in two years within the three previous years in addition to the statistical year (see the definition of low income). The definition is based on the recommendations of Eurostat, the Statistical Office of the European Communities.

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Long-term unemployed is a person who has been continuously unemployed during the survey time for 12 months or longer.

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Rigid road motor vehicle designed, exclusively or primarily, to carry goods. Gross weight in excess of 3,500 kg.

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Low-income earners (persons at risk of poverty) are considered those whose household's disposable money income per consumption unit (so-called equivalent income) is lower than 60 per cent of the equivalent median money income of all households. The proportion of the population falling below this income limit is called the low income rate (at-risk-of-poverty-rate). The euro-denominated limit for low income varies by year. The definition is based on the recommendations of Eurostat, the Statistical Office of the European Communities. There is no official national definition for low income or poverty line in Finland.

From the statistical reference year 2011 onwards, the income distribution statistics started to use the money income concept meeting international recommendations for statistics on low income earning (poverty risk). In reports published before that, a wider income concept was used, that is, households' disposable equivalent income, when income included so-called imputed rent and sales profits.

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Persons with low work intensity are persons who belong to a household whose working-age members worked under 20 per cent of their possible total labour input during the year. In the calculation, the months worked by working-age persons are proportioned to the theoretical maximum number of months in gainful employment of working-age members of the household. Persons of working age include persons aged 18 to 64, excluding students aged 18 to 24, persons who have reported themselves as primarily pensioners, persons who receive pension income (excl. survivors' pensions and disability pensions, private pensions as property income) and persons aged 60 or over who are not at work at all and whose household's main source of income is pensions (excl. survivors' pensions, and disability pensions, private pensions as property income). The indicator is not formed at all for households that consist only of underage children, students aged under 25 or persons aged 65 or over. In the calculation, part-time work is changed to correspond to full-time work based on hours worked per week.

The definition of low work intensity was revised at Eurostat in 2021. Statistics Finland's statistics on living conditions release data on low work intensity with the new definition starting from the releases for the statistical reference year 2020. Data according to the new definition are available in database tables starting from 2015. Time series data according to the old definition from 2005 to 2019 are available in the table archive. The definition change has an impact on the indicator describing at risk of poverty or social exclusion.

According to the old definition, persons with low work intensity are persons who belong to a household whose working-age members worked under 20 per cent of their possible total labour input during the year. In the calculation, the months worked by working-age persons were proportioned to the theoretical maximum number of months in gainful employment of working-age members of the household. According to the old definition, persons aged 18 to 59 excluding students aged 18 to 24 were included in working-age persons. The indicator was not formed at all for households that consisted only of underage children, students aged under 25 or persons aged 60 or over. In the calculation of the old definition, part-time work was changed to correspond to full-time work based on hours worked per week.

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