Summary:
Risk of poverty rate increased to 17% for the first time in seven years.
Children and young people are the most vulnerable, particularly in single-parent households.
Intensity of poverty reached 25.6%, indicating a deepening financial crisis.
One in ten workers is classified as poor, showing that employment does not guarantee financial stability.
Housing prices have more than doubled since 2015, creating a severe affordability crisis for many.
Poverty in Portugal: A Stark Reality
On the occasion of the International Day for the Eradication of Poverty, Pordata, the statistical database of the Francisco Manuel dos Santos Foundation, has released troubling data reflecting the current state and evolution of poverty in Portugal, one of the country's most pressing challenges.
Key Findings
The risk of poverty rate saw a slight increase for the first time in seven years, rising by 0.6 percentage points from 16.4% to 17% in 2022. The most affected group was children and young people, especially those in families with dependent children. Notably, one in ten workers is classified as poor, and Portugal stands out in Europe for its thermal comfort issues, with the highest proportion of people unable to keep their homes adequately heated.
Vulnerability of Children
Almost one in three single-parent families with dependent children lives on less than €591 per month. According to the 2022 Living Conditions and Income Survey, 1.9 million people in Portugal were at risk of poverty, living on less than €591 monthly. This figure rises to 2.1 million when considering those unable to afford essential goods.
Intensifying Poverty
The intensity of poverty has reached its highest increase since 2012, with 25.6% of the poor living 25.6% below the poverty line in 2022. This indicates a concerning depth to the poverty experienced by many.
Employment Does Not Equal Security
Despite a slight decrease in the percentage of employed individuals living in poverty from 10.3% to 10%, this statistic remains alarming, highlighting that having a job does not guarantee financial security.
Housing Crisis
The housing prices in Portugal have more than doubled since 2015, with a staggering 106% increase, while salaries have only increased by 35%. Additionally, 27% of renters face financial strain, spending over 40% of their income on housing costs.
European Context
Portugal has the 13th highest risk of poverty or social exclusion in the EU, with one in five people affected. The statistical definitions of poverty vary across Europe, making comparisons complex. For example, the poverty line in Portugal is set at €7,095 annually, significantly lower than in wealthier countries like Luxembourg, where it is €28,582.
Conclusion
The findings paint a stark picture of poverty in Portugal, revealing significant challenges that require urgent attention and action from policymakers and society as a whole.
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