According to INE, the rate measuring the risk of poverty fell to 17.2% last year, one-tenth less than the previous year. Despite the decline, the risk of poverty among working-age adults has risen.
The at-risk-of-poverty rate retreated by a tenth last year, affecting 17.2% of the population, revealed the National Statistics Institute (INE) this Tuesday. The risk of poverty has fallen for four consecutive years, but the reduction recorded in 2018 was the most timid. At risk of poverty are people with a net income below 501 euros per month.
The data published this morning by INE result were obtained through the Survey on Living Conditions and Income carried out this year but which focuses on last year’s income.
INE explains that the at-risk-of-poverty rate last year corresponded to “the proportion of inhabitants with annual net monetary income per equivalent adult less than 6,014 euros (501 euros per month). This threshold corresponds to 60% of the median (10,023 euros) of equivalent monetary income distribution”.
The reduction in the risk of poverty has particularly affected children under the age of 18 and the elderly population. The poverty rate for working-age adults was 16.9%, 0.2 percentage points (p.p.) higher than in 2017. This countercyclical movement occurred for the first time since the at-risk-of-poverty rate is falling.
“Although the unemployed population continues to decline, the increase in the relative poverty line in 2018 was reflected in a further increase in the risk of poverty for the unemployed population: from 45.7% in 2017 to 47.5% in 2018. In 2018, the risk of poverty for the retired population decreased, with a rate of 15.2%, 0.5 p.p. lower than in 2017 (15.7%),” writes the institute.
INE reports that the risk of poverty has been reduced “especially for families without children. In 2018, the risk of poverty was reduced for households without dependent children (16.2%, 0.2 p.p. less than in 2017) and increased for households with dependent children (18.3%, 0.2 p.p. more than the previous year)”.