The story

Well-being refers to the quality of life ‘here and now’, as well as the extent to which this is achieved at the expense of the well-being of future generations or of people elsewhere in the world. Well-being has three dimensions:

Well-being ‘here and now’ concerns people who currently live in the Netherlands. It is about their quality of life and the quality of the environment they live in. Key factors here are subjective well-being, material well-being, health, labour and leisure time, housing, society, safety and the environment.

Well-being ‘later’ is about the people who will be living in the Netherlands in the coming decades and who, in order to achieve the same level of well-being as the current generation, will need access to resources that are being used now. These resources are also known as ‘capitals’. More specifically, it concerns economic, human, natural and social capital.

Well-being ‘elsewhere’ is about the consequences of our choices for people in other countries, both now and in the future. It concerns the positive and negative effects of choices made by people in the Netherlands, on jobs, income, resources (both renewable and non-renewable), the environment and institutions in other countries.

Well-being encompasses more than just the average quality of life of individuals currently living in the Netherlands. It is also about the sustainability and inclusivity of quality of life. Sustainability and inclusivity can only be understood (and measured) at the collective level of groups or societies, where outcomes are determined by interactions between individuals and between people and their environment.

Well-being is a neutral concept. Societal outcomes result from the choices of millions of people with varying characteristics (age, gender, family situation), acting based on different values (economic, religious, philosophical) and in different roles (entrepreneur, breadwinner, employee, member of a faith community). Statistics on well-being should therefore measure the diversity of relevant aspects. Moreover, it is not necessary for all aspects of well-being to improve continuously. Unlike GDP, well-being does not require growth.. Users of this monitor are free to set their own priorities and objectives.

Sustainability

Sustainability is about the balance between all the social, economic, natural and other resources that the people living in the Netherlands today – the current generation – use to ensure their well-being, and the resources that the generations after us are going to need for their well-being. These resources, also known as ‘capitals’, are stocks, systems, infrastructures and networks that, with proper maintenance, can have a very long lifespan.

If the current generation exhausts or degrades these various forms of capital, the following generation will not be able to achieve the same level of well-being ‘here and now’. When mutual trust declines and the social, civic and political participation of large groups diminishes, when technology becomes obsolete and infrastructure is neglected, when the natural environment is polluted and becomes uninhabitable for humans and animals, or when education is not accessible to all and necessary skills are not taught, there are inevitable consequences for the next generation. This might mean that life is lived differently without any deterioration in well-being. But the more that the various forms of capital are degraded, the fewer opportunities the next generation will have to live differently. If our natural capital is depleted – particularly if this occurs on a global scale – the foundation of human life will be at risk.

Three types of resources

People use their resources here and now to shape their lives. They make their own choices, individually or as part of a family or household, based on their personal needs, preferences and abilities. Assets and savings are used to buy or rent a home, purchase a car, take a long holiday or build up a supplementary pension. Meanwhile, social networks help people find work, fill their free time by seeing friends and acquaintances, or prevent loneliness. In local communities, people rely on each other for safety and care, and to maintain traditions. Green living environments provide recreational opportunities for people while also offering fresh air, tranquillity and natural beauty. Knowledge and skills enable people to function effectively in society, engage in meaningful and healthy activities, and manage their own lives.

People also depend on resources over which they have no individual control. Some of these resources are provided by the government, social institutions, companies and civil society organisations. Material well-being, for instance, is highly dependent on the economy’s earning power, as well as on knowledge development and technological innovation by companies and researchers. Collective social institutions provide safety and stability, offer care and security, create space for cultural diversity and protect historical heritage. The education system teaches children how society and politics work, how to exercise their citizenship, what fundamental rights are, and how democracies function.

Some of these resources fulfil a public function without anyone being responsible for them. The natural environment, which provides a habitat for animals and plants, is a good example of this. Our planet is habitable for humans, animals and plants as a result of various natural processes (biological, chemical and geological). But while human beings can protect nature, they cannot control it. The same is true for social capital. Mutual trust in society is fostered through shared values, traditions and culture, which mostly develop organically through social interactions, rather than being formally established.

Three major systems: the biosphere, society and the economy

Future generations may make different choices about how they use social, economic and natural resources to shape their well-being. To make these choices freely, they need healthy systems. Well-being depends on three major systems: the biosphere, society and the economy.

The biosphere makes life on earth possible. Human activity exerts pressure on the functioning of this system. This happens through things like greenhouse gas emissions, environmental pollution, excessive water consumption, and the degradation of ecosystems and biodiversity caused by nitrogen and phosphorus surpluses and changes in land use. Society is where people shape their lives through mutual relationships and interactions. It is dependent on social cohesion and sufficient levels of trust, as well as equal opportunities for social, cultural, civic and political participation. Finally, the economy provides basic necessities such as food, clothing and shelter. To maintain stocks of production and capital, the economy must have sufficient earning power and capacity to innovate. These three major systems are hierarchically ordered: without the biosphere there can be no life, and without society there can be no economy.

In addition, strong institutions are needed to regulate each of these systems. They establish the formal and informal rules and norms that govern social, economic, political and other interactions within a society, such as laws and regulations, norms and values, traditions, contracts, and political customs and procedures. Schools, governments, parliament, the judiciary, churches and companies are examples of organisations that make and enforce rules.

Inclusivity

Well-being is described from the perspective of humans. In principle, this monitor covers everybody living in the European Netherlands, regardless of sex, age, religion, origin or other characteristics. Depending on the statistical information available on a given topic, the focus can be on individuals, households, breadwinners, employees or schoolchildren.

Freedom of choice and equality of opportunity are key concepts when it comes to well-being. Well-being is about the choices people have, the choices they actually make (here and now) to make their lives worthwhile, and the consequences of these choices for future generations and people elsewhere in the world. Everyone in the Netherlands is equal and has the same fundamental rights. Inclusivity means that everyone has the same freedoms to live a life of value.

In practice, not everyone has the same opportunities and people make different choices, which is why well-being varies between population groups and regions. Nevertheless, the distribution of well-being should be monitored closely, especially at the extremes. Severe disparities, such as widespread poverty or homelessness, hunger, social exclusion or the excessive concentration of wealth among a small group can have major consequences for society.

Long-term developments

Long-term developments are changing the context in which people make choices to shape their lives. These developments do not necessarily have a direct (positive or negative) impact on well-being. While they are beyond the control of individual people, they do affect the entire spectrum of choices they can make. Long-term developments are gradually increasing the pressure on well-being in the Netherlands, particularly that of future generations.

Population ageing is gradually changing the ratio of employed to non-employed people. This places limits on the sustainability of pensions and social security. Population ageing is also creating major challenges for health care and, given the current circumstances, it is exacerbating the housing shortage.

Urbanisation is transforming the natural and social environments in which people live. It also requires special facilities and infrastructure, and presents challenges relating to mobility, health and safety. At the same time, cities are innovative and culturally dynamic environments with lots of room for diversity. The results of the regional Monitor of Well-being reveal major differences between urban and rural municipalities when it comes to well-being.

Migration affects all dimensions of well-being in the Netherlands. It is currently the main driver of population growth, and this is unlikely to change in the future. Population growth increases pressure on natural resources, available space and public institutions. The arrival of migrants also affects social cohesion within communities. This can be attributed to the integration process and concerns among the population (Netherlands Institute for Social Research (SCP), 2022). It is difficult to determine how migration affects specific aspects of well-being ‘here and now’, ‘later’ and ‘elsewhere’. The relationship between migration and well-being is too complex to be captured by a single indicator, and the scientific evidence on the effects of immigration and emigration is ambiguous. Studies often reveal a combination of positive and negative impacts rather than an absolute effect. Moreover, those impacts vary for different groups, also in terms of how they are perceived. From a well-being perspective, it is important to consider the impact of migration on the Netherlands as well as the well-being of migrants.

Digitalisation, robotisation and globalisation are changing how much control people have over their lives. This also has a direct and indirect effect on perceived control over life, mental health, work and leisure, social relationships and other aspects of well-being. Digitalisation provides a wealth of opportunities to enhance our lives. On the other hand, it also presents major challenges in terms of privacy and personal data, the use of algorithms and the risk of exclusion and choice limitation, the constant need to develop new skills in order to gain access to technology and information, and health impacts. Some workers, such as translators and call centre operators, are at risk of losing their jobs to robotisation and artificial intelligence (AI). Globalisation is creating an increasingly interconnected world in many ways: economic, cultural, political and social. This interconnectedness offers all kinds of benefits, but also presents a number of potential problems. For example, the Netherlands is becoming increasingly dependent on decisions made elsewhere in the world.

How does Statistics Netherlands measure well-being?

At the request of the Dutch House of Representatives, Statistics Netherlands publishes the Monitor of Well-being and the Sustainable Development Goals every year in May to provide an overview of the state and development of well-being on Accountability Day. The monitor offers insights into well-being ‘here and now’, ‘later’ and ‘elsewhere’. These insights are supported by figures on the distribution of well-being among different population groups, the Sustainable Development Goals and the Netherlands’ shock resilience.

The monitor describes the medium-term trend (2017-2024), compares the Netherlands with other EU-27 countries where possible and measures the change between the two most recent figures for each indicator.

Statistics Netherlands’ publications on well-being are intended for politicians, policymakers and other users of statistical information on well-being, such as advisory councils, planning agencies, knowledge institutions and civil society organisations, both at national and regional level. In addition to this monitor, Statistics Netherlands publishes regional monitors (the Monitor of Well-being and the Sustainable Development Goals for the Caribbean Netherlands in November and the regional Monitor of Well-being in December) and well-being factsheets to support the central government’s budget process.

Statistics Netherlands monitors well-being comprehensively – covering all aspects of the phenomenon – and systematically – based on international standards and transparent methods, in accordance with the Conference of European Statisticians (CES) Recommendations on Measuring Sustainable Development (UNECE, 2014). Statistics Netherlands also contributes to the further improvement and harmonisation of the CES Recommendations and other international frameworks, which are being developed under the leadership of the UN, OECD and Eurostat. It is closely involved, for instance, in the development of the UN Framework for Inclusive and Sustainable Wellbeing, which will make it possible to measure well-being worldwide.

The monitoring of well-being is relevant and useful because it connects to societal themes and provides valuable statistical insights. The Sustainable Development Goals (SDGs) allow Statistics Netherlands to identify themes that are relevant to policy and politics in a neutral and systematic manner. The SDGs are an integral part of well-being: well-being is the general phenomenon, while the SDGs are international objectives that touch on all environmental, social and economic aspects of well-being. The 17 SDGs were adopted by the UN in 2015. Government leaders from 193 countries have committed themselves to this sustainable development agenda, which runs until 2030 (UN, 2015).

Well-being offers a politically neutral picture, and the statistical monitoring of the relevant indicators is systematic and comprehensive rather than selective in nature. By definition, it encompasses all dimensions and themes. However, users are free to be selective and use the available information for their own political or societal purposes. The broad information base on well-being provided by this monitor and other Statistics Netherlands publications enables people across the political spectrum to develop sound arguments to support their views. It also facilitates effective decision-making.

Statistics Netherlands only monitors the statistically measurable aspects of well-being. Unfortunately, there are many vital but statistically ‘invisible’ aspects as well, such as the strength of democracy and the rule of law, the intrinsic value of nature, and cultural norms and values. It is important not to narrow the public discussion on well-being to those aspects that are measurable. Statistics Netherlands consistently tries to draw attention to non-measurable aspects while also measuring them indirectly, for example through perception indicators.