In 2011 the number of population at-risk-of-poverty has increased

05.02.2013

In 2011, growing economy benefitted the income of active population, and as a result at-risk-of-poverty rate1 decreased. Income of persons living close to the at-risk-of-poverty threshold grew slower than the average income level. They could get under the rising the at-risk-of-poverty threshold. This risk group mainly included retired persons receiving small pensions and other individuals with low income.

Data of the Central Statistical Bureau (CSB) show that, due to increase in population income, the at-risk-of-poverty threshold2 derived from it is growing.

At-risk-of-poverty threshold in 2010 – 2011 (LVL per month)

 

20103

2011

Single person

147

157

Two adults

221

235

Two adults with 1 child aged under 14

265

282

Two adults with 2 children aged under 14

309

329

Calculations of the at-risk-of-poverty rate are based on the at-risk-of-poverty threshold that is rather relative.

In 2011, at-risk-of-poverty rate has repeatedly started to rise and reaches 19.4%. In 2011, each 5th person was at-risk-of poverty and total number of such persons reached 394.5 thousand.

At-risk-of-poverty in 2010 – 2011

 

2010

2011

Number of persons at-risk-of-poverty (thousand)

392.3

394.5

 

 Of which females (thousand)

205.8

214.1

At-risk-of-poverty rate (per cent)

19.1

19.4

 

 Females at-risk-of-poverty (per cent)

18.4

19.4

Economic growth and rise in the employment have positively influenced at-risk-of-poverty among employed persons. At-risk-of-poverty rate for employed persons has diminished from 9.4% in 2010 to 8.8% in 2011. Whereas among retired persons it has risen from 11% to 16% and among single-parent families - from 39% to 43%.

In the households at-risk-of-poverty the income from social transfers4 in the structure of household disposable income5 comprised 56%, whereas in the richest households (5th quintile6) - 16%.

The ratio between the income of the richest (5th quintile) and the poorest (1st quintile) households in 2011 reached 6.5 times7.

Data source for the relative poverty and social exclusion indicators is "Community Statistics on Income and Living Conditions" (EU-SILC) survey. In the 2012 survey 6.5 thousand households were surveyed and 13 thousand respondents aged 16 years and over were interviewed. Data on income were compiled on 2011. Data on income in 2012 will be compiled within the framework of the EU-SILC 2013 survey that will be launched in March of this year and will be conducted until the end of June.

CSB informs that Eurostat, unlike the CSB, is publishing monetary poverty and social exclusion data with a reference to the year when survey was carried out, nevertheless information on income regards previous calendar year.  On 3 December 2012 Eurostat published EU-SILC 2011 data on poverty and social exclusion that actually depict the income received in 2010.

More information on EU-SILC results and methodology is available in the CSB database.

 

Prepared by the Income and Living Conditions Statistics Section
Viktors Veretjanovs
Tel. 67366609

 

Methodological explanations

1At-risk-of-poverty rate - share of persons with an equivalised disposable income below 60% of the national median equivalised disposable income.Equivalised disposable income Household disposable income divided by its “equivalent size”, which is calculated with the help of the so–called “modified OECD” equivalence scale.This scale gives a weight of 1.0 to the first adult, 0.5 to any other household member aged 14 and over and 0.3 to each child aged less than 14.

2At-risk-of-poverty threshold- 60% of the equivalent disposable income median. Median is statistical indicator characterising central value (medium point of the breakdown) of the observations grouped from the lowest value to the highest.

3hereinafter data on 2010 have been recalculated basing on the population number estimates acquired within the Population and Housing Census.

4Social transfers - pensions and benefits paid by the State or municipality, child maintenance payments, scholarships, social insurance benefits and compensations, including the ones paid by other countries.

5Disposable income - cash income from labour, employee income in kind received by using company car for private needs estimated in cash, income or losses received from self-employment, received pensions and benefits, regular material assistance from other households, profit from interests of deposits, dividends, shares, income received by children aged under 16, income from property rental, receipts for tax adjustments from State Revenue Service (for business activities, eligible costs – education, medical treatment etc.).

6 Quintile– one fifth (20%) of the number of surveyed households grouped in increasing sequence according to the disposable income per one household member. The lowest (first) quintile includes one fifth of the households with the lowest income, bet the highest (fifth) - one fifth of the households with the highest income.

7Quintile share ratio (S80/S20) - ratio of total equivalised disposable income received by the 20% of the country’s population with the highest equivalised disposable income (top quintile) to that received by the 20% of the country’s population with the lowest equivalised disposable income (bottom quintile).