Results of the household trend survey for the first quarter of 2022 – e-briefing | Briefing Room | news

When the time is right, let’s get started.

Hello? I am the head of the household income distribution trend section of the National Statistical Office.

We will explain the results of the household trend survey for the first quarter of 2022.

The results of the household trend survey are the average monthly amount for all households, including single-person households and farmers and fishermen.

‘Illustration’ will be replaced with data.

Page 2, Income Trends.

The average monthly income per household in the first quarter of 2022 for households with one or more members nationwide was 4,825,000 won, a 10.1% increase from the same quarter of the previous year.

Looking at this by component of ordinary income, earned income rose 10.2% from the same quarter of the previous year to 3,062,000 won, and business income rose 12.4% to 862,000 won.

Transfer income was KRW 780,000, an increase of 7.9% compared to the same quarter of the previous year. Among them, public transfer income increased by 9.5% compared to the same quarter of the previous year, due to an increase in social benefits such as quarantine subsidies and loss compensation for small businesses.

Private transfer income increased by 4.3% compared to the same period last year. Compared to the same period of the previous year, earned income and business income increased significantly, leading to an increase in overall income.

The following is page 3, consumption expenditure trends.

The average monthly consumption expenditure per household in the first quarter of 2022 for households with one or more members nationwide was 2,531,000 won, an increase of 4.7% from the same quarter of the previous year.

Let’s take a closer look at each of the 12 major categories.

First, page 4.

Food and non-alcoholic beverages, which account for the largest share of consumer spending, were 388,000 won, up 0.9% from the same quarter of the previous year.

Expenditure on alcoholic beverages and cigarettes decreased 0.6% to KRW 36,000, while expenditure on clothing and footwear increased by 5.7% to KRW 113,000.

Next, page 5.

Expenditure on housing, water, and electricity was 348,000 won, up 2.3% from the same quarter of the previous year.

Spending on household goods and housekeeping services decreased by 10.4% to KRW 106,000, while expenditure on health increased by 7.5% to KRW 231,000.

It’s page 6.

Transportation expenditure was KRW 278,000, an increase of 2.8% compared to the same period of the previous year.

Telecommunication spending increased by 1.3% to 122,000 won, and entertainment and culture spending increased by 4.7% to 144,000 won.

It’s page 7.

Education expenditure was KRW 230,000, an increase of 13.5% compared to the same quarter of the previous year.

Expenditure on food and lodging increased by 13.9% to KRW 333,000, while expenditure on other goods and services increased by 4.0% to KRW 203,000.

Next page 8, non-consumer spending trends.

In the first quarter of 2022, the average monthly non-consumption expenditure per household was 965,000 won, an increase of 10.5% from the same quarter of the previous year.

Current tax increased by 28.3%, social insurance premiums increased by 10.3%, and household relocation expenses increased by 8.9%.

Next is the household balance trend.

In the first quarter of 2022, the average monthly disposable income per household was 3.86 million won, up 10.0% from the same quarter of the previous year.

The surplus after deducting consumption expenditures from household disposable income was KRW 1,329,000, an increase of 21.7% from the same quarter of the previous year, and the average propensity to consume fell 3.3%p to 65.6%.

The following is page 9, the household balance by income quintile.

In the first quarter of 2022, the average monthly income of households in the first income quintile was KRW 1,043,000, a 14.6% increase from the same quarter of the previous year, and the average monthly income of households in the fifth quintile was KRW 10.833,000, an increase of 11.5%.

The disposable income of households in the first quintile was 847,000 won, an increase of 16.4% compared to the same period of the previous year, and the average propensity to consume decreased by 17.5%p to 137%.

The disposable income of households in the fifth quintile was KRW 8.47 million, an increase of 11.7% compared to the same quarter of the previous year, and the average propensity to consume decreased by 5.1%p to 51.4%.

The following is the consumption expenditure trend by income quintile on page 10.

In the first quarter of 2022, the average monthly consumption expenditure of households in the first income quintile was 1.16 million won, an increase of 3.2% from the same quarter of the previous year, and the average monthly consumption expenditure of households in the fifth income quintile was 4.354,000 won, a 1.7% increase.

Looking at the proportion of consumption expenditure, households in the first income decile showed the highest levels of housing, water, and energy at 22.7%, food and non-alcoholic beverages at 21.7%, and health at 13.0%. Food and non-alcoholic beverages accounted for the highest at 13.2%.

Finally, page 50, ‘Appendix 4’, quarterly equalized disposable income quintile multiplier.

During the first quarter of 2022, the quintile multiplier was 6.2 times, down 0.1 times from the same quarter of the previous year.

However, the main purpose of the household trend survey is to understand the quarterly flow of household income. I would say that it is more desirable to estimate the overall distribution situation more accurately and through the annual household financial welfare survey supplemented with administrative data.

‘Appendix 5’ on page 51 is the result of counting non-agricultural and fishermen households with two or more members. Please refer to the materials.

After the explanation above, if you have any questions, I will answer them.

[질문·답변]
※Please understand that the contents that cannot be confirmed due to the non-use of the microphone are marked with an asterisk (***).

Public transfer income has the largest increase in the quintile, is there any reason?

In the first quarter of this year, due to the corona virus, quarantine support and loss compensation were provided. In the fifth quintile households, the proportion of self-employed households is slightly higher than in other quintiles. Also, there is an aspect that households that have received such quarantine support or loss compensation have moved a little bit because of it. As a result, public transfer income increased.

The average monthly income has risen to the highest level since statistics were compiled. Please explain the background in detail. what is the cause

The average monthly income for this quarter was 10.1%, the highest increase since statistics were compiled for single-person households in 2006. The reason for this increase was, of course, the base effect compared to last year. Wasn’t the largest increase rate due to the fact that earned income increased as the number of employed persons increased, business income increased due to the improvement of the service industry, and social benefits increased due to the corona virus, each of which increased significantly by income source? I think so.

First of all, I wonder if this is the first time that the average monthly income of quintile households has exceeded 10 million won, or if it has happened before.

Also, consumption expenditure according to income gap, consumption expenditure between the first and fifth quintiles also increased by about 40,000 won.

And when I looked at the real consumption expenditure reflecting the consumption expenditure and inflation, the rate of increase was in the 0% range, but this is a real, yet rebound due to the Corona situation…

First of all, I will confirm the income of 10 million won and the quintiles who earned more than 10 million won later, and I will tell you again. Did you mention the consumption expenditure gap between the 1st and 5th quintiles?

Yes. ***

The income growth rate was higher in the first decile, but the income growth rate was higher in the fifth quintile. Because of that, income and absolute amount increased, so consumption also went up a little more, I think.

And the last question is real consumption expenditure… One last question, can you say it one more time?

***

Well, there are aspects that it is difficult to say about such a situation while stating trends. First of all, as the consumer price index rose significantly, nominal income rose a lot, but consumption expenditure, income fell significantly as a result. So, as you can see when we see it, disposable income has increased a lot now, and the surplus has also risen a lot.

*** 9.79 million won came out, but if this is the biggest gap, please check that too.

difference? If you can talk about it there, please do.

(Responsible person) First of all, in the fifth quintile, it increased to more than 10 million won… More than 10 million won came out in the third quarter of 2021, more than 10 million won. Since then, more than 10 million won has been continuously coming out. More than 10 million won after the third quarter of 2021.

the difference too. Checking that too, the time series by quantile is a bit too large, so we don’t have it right now.

If you look at the quintile magnification ratio, it seems that there is a trend of improvement for three consecutive quarters.

As you said, the quintile ratio has been improving for the last three quarters in a row. First of all, the quintile multiplier is the difference in the ratio between the 1st quartile and the 5th quartile. Recently, the income growth rate is slightly higher in the first quintile than in the quintile, as wage and salary income in the first decile has increased due to the increase in the number of employed people. As a result, the gap, that is, the magnification, is relatively low, and for that reason, it is showing an improvement effect.

Does the 1st supplementary budget have any effect on total income or business income?

Of course, the impact is obvious. The first supplementary budget subsidy is included in the transfer income, but the transfer income does not include only social benefits, and there are not only social benefits, but there are various things, so it will be difficult to tell the amount by just putting it out. It’s like.

Because transfer income includes public pensions, basic pensions, inter-family…

It is shown here that consumption expenditure on household goods and housekeeping services decreased only in two, such as alcohol and tobacco.

One more thing I’m curious about is that you said that in the case of the food and lodging industries, the improvement of the service industry was affected by the lifting of the corona social distancing, etc. In fact, in the case of the first quarter, omicron mutation was very severe. So I wonder if there was any such effect.

The decrease in the rate of increase in household and housework services, first of all, was slightly higher for home and housework in the previous year. Wait.

According to our research, last year, it seems that the proportion of spending on furniture instead of remodeling or not going out of this house was high. While remodeling or doing things like that, the cost of purchasing furniture and stuff like that increased a bit. Since it is a bit large, there was a slight decrease as a base effect for it this year, and household and household items.

The food and lodging industry increased… Despite the Omicron, the time and number of people restrictions were gradually loosened, such as when we relaxed the distance in the first quarter, or 9 to 10, 10 to 12, etc. A lot of people who are tired of the general corona and have accumulated a little bit of fatigue as those things are resolved, I think that they did not spend a lot on food or accommodation outside.

Let me ask you one more thing. Anyway, I think it would be good if you could give a general overview of the income gap and the widening income gap between the 1st and 5th quintiles.

And income… Looking at the income by sector, earned income increased a lot in the first quintile, and business income increased a lot in the fifth quintile. Could you please explain this?

Are you talking about the amount of income gap in the first, first, and fifth quintiles?

Yes, by amount.

Apparently, the income itself between the 1st and 5th quintiles shows the same growth rate because the scale itself is already much larger in the quintile, or even if the 1st quintile has a slightly higher growth rate, the absolute amount is slightly higher in the quintile, so the gap is probably widening. It seems like there is no choice but to lose, structurally.

The increase in earned income and business income in the quintile of the first quintile you asked in the second question is, first of all, in the first quintile, there are many elderly households over the age of 60, compared to other quintiles. However, looking at the employment trend, the employment trend in the first quarter showed a significant increase in the number of employed people aged 60 and over. At the same time, earned income and an increase in earned income following an increase in the number of employed people affected the first quintile.

In the case of the quintile, the proportion of self-employed people is slightly higher, so it is relatively compared to other quintiles. Some service industry conditions in the first quintile were slightly improved compared to the previous year, and that seems to be the effect. The proportion of the self-employed is somewhat different, and some composition of the self-employed, where the proportion was a little bit different from last year and this year, and the households that were in the low quartile last year, are also being noticed that some households moved upward in this quarter.

And, notice in the quantile statistics that the households in this decile are not the same year after year. Since it is a concept that we order this each time we survey and divide it relative to the top 20% or bottom 20% from there, if the same household last year is the same household for comparison this year, we need to reflect the characteristics a little more. As it may be easy to see, there is a characteristic that households that were in the third or fourth quartile last year can move up to the fourth or fifth quartile this year and vice versa. So, when comparing any increase/decrease rate of quantile statistics, it would be appreciated if you consider that there is such a property and pay attention.

So, if there are no more questions, I will finish the explanation. If you have any other questions, please contact us and we will answer them.

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