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Home Europa Press

Canary Islands Poverty Declines for Third Year, Yet Many Struggle Financially

October 16, 2024
in Europa Press
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Canary Islands Poverty Declines for Third Year, Yet Many Struggle Financially
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SANTA CRUZ DE TENERIFE, 15 Oct (EUROPA PRESS) –

The Canary Islands ranks as the second autonomous community, following Andalusia, with the highest percentage of individuals at risk of poverty and/or social exclusion, amounting to 33.8% of the populace, approximately 750,000 individuals (one in three). If it were considered a separate nation within the European Union, it would be classified as the most impoverished in Europe, falling behind Romania and Bulgaria.

This statistic has improved by 2.4 percentage points compared to the figures recorded in 2022, marking the third consecutive year of decline in this metric. Nonetheless, the decrease is still regarded as “very slow and insufficient,” and it remains considerably above the AROPE rate observed at the national level, which stands at 26.5%.

Furthermore, the impact of the escalating cost of living is evident, as nearly 65% of the population in the Canary Islands (around 1.4 million individuals) report facing challenges in making ends meet, representing an increase of 4.1% from the previous year.

These figures reveal that the Canary Islands are “far from” achieving one of the goals set by the 2030 Agenda, which aims to halve the number of individuals living in poverty and/or social exclusion, translating to a reduction to 591,000 people. Consequently, it would require 156,000 individuals to escape poverty and/or social exclusion within just six years.

This information is derived from the XVI Report ‘The State of Poverty. Monitoring of the Indicators of the EU 2030 Agenda. 2015-2022. Canary Islands’, presented on Tuesday by the Vice President of EAPN-Canary Islands, Fernando Rodríguez, to the President of the Parliament of the Canary Islands, Astrid Pérez.

The report underscores the Canary Islands as one of the autonomous communities where the rates of poverty risk, severe poverty, and acute material and social deprivation have seen the most significant reductions. In this context, measures taken by the authorities have averted 382,000 additional people from entering poverty. Without these interventions, the poverty rate would have surged by 24.9 points, reaching 51% of the population.

Specifically, 26.1% of the Canary Islands population is at risk of poverty (578,000 individuals), which is 3.3 points lower than the previous year but 5.9 points higher than the national average, making it the third autonomous community with the highest rate. Additionally, 9.5% of the population faces severe poverty (215,000 individuals), a reduction of 3.5 points from 2022, marking it as the sixth highest rate in the community.

Moreover, the Canary Islands displays the most significant relative increase in average income, rising from €10,716 in 2022 to €12,177 in 2023, contributing to a reduction in inequality levels. However, the real average income per capita in the Canary Islands is €9,396. When adjusted for the cost of living based on the CPI, it reflects a mere increase of €1,462 since 2015.

Other metrics, such as the percentage of individuals in households with low employment intensity, have not shown considerable improvement within the archipelago. Specifically, 14.3% of the population (316,461 individuals) resides in households where less than 20% of their total employment potential is utilised.

Regarding the gender gap, the feminisation of poverty remains a persistent issue. The data indicates that 35.2% of women are living in poverty and/or social exclusion, compared to 32.4% of men. Although the female rate has decreased by 3.1 points over the last year, it is still 3.2 points higher than that of males.

Children are particularly affected, with alarming statistics indicating that approximately 44.5% of children and adolescents in the Canary Islands are at risk of poverty and/or social exclusion (around 157,739 individuals under 18). Despite a decrease of 3.3 points from the previous year, the rate remains exceptionally high compared to other age demographics.

When analysing by locality, the poverty rate in rural areas of the islands stands at 30.8%, whereas in urban settings this rate falls to 25.9%.

IMPACT OF RISING LIVING COSTS ON POVERTY DATA

While the AROPE rate has seen a decline in the Canary Islands, the repercussions of the soaring cost of living are evident, with 64.8% of the population (around 1.4 million individuals) reporting difficulties in managing their finances. This marks a 4.1% increase from the previous year and is 16.3 points above the national average, making it the autonomous community with the highest indicator.

This is further corroborated by the severe material and social deprivation (PMSS) component of the AROPE rate, an indicator of serious vulnerability that gauges the ability to access 13 elements of consumption and social interactions deemed necessary for maintaining an adequate quality of life within European society. These elements include ensuring that homes are adequately heated, the capacity to manage unexpected expenses, or the ability to afford a meat, chicken, or fish meal every two days.

In the Canary Islands, 11% of the population (243,431 individuals) is subjected to severe material and social deprivation, two points above the national average, making it the second autonomous community with the highest rate.

In addition to general price increases, the rise in housing costs must also be addressed. In the Canary Islands, 17.3% of income is allocated to housing expenses, a figure comparable to that recorded at the national level (17.6%). The report indicates that the average expense associated with mortgages is €538, which is only €44 higher than the average rent expense (€494).

The situation deteriorates considerably for low-income families, who allocate 34.1% of their income to housing-related expenses. Furthermore, 19% of the Canarian population (420,000 individuals) experience delays in paying their rent or mortgage, which is 7 points above the national average, indicating the region has the highest indicator in this respect.

On the subject of energy poverty, 14.7% of the population in the Canary Islands face delays in paying utility bills (325,000 individuals), which is 5 points above the national average. Additionally, 27.6% struggle to maintain their homes at a suitable temperature (611,000 individuals), representing an increase of 6.9 points above the national average, again marking the community with the highest figure.

A concerning 53.3% of the Canary Islands’ population lacks the means to manage unexpected expenses (1,180,000 individuals), which is 16.2 points above the national average, placing the Canary Islands at the highest rate.

SOCIAL POLICIES TO COMBAT POVERTY

In light of this situation, EAPN puts forward three recommendations to alleviate poverty and address social exclusion. The first is to formulate comprehensive poverty strategies that consider all public administrations with authority on poverty and all levels of government. A broad and long-term agreement is essential, taking the form of a Pact to Combat Poverty and Social Exclusion.

Secondly, there is a need to enhance and develop the mechanisms for implementing public policies related to income guarantees (such as the Canarian Citizenship Income, its various supplements, and its compatibility with the Minimum Living Income), as well as access and maintenance of housing and the enhancement of public services such as education, healthcare, and social services, particularly for the most vulnerable populations.

Finally, EAPN advocates for the necessary intensification of social protection policies to meet the objectives outlined by the 2030 Agenda, promoting structural social policies that are integrated into the social rights framework of a welfare state, rather than merely responding to emergencies.

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