Increase in the at-risk-of-poverty rate in the Valencia Region over the last decade

Recent statistics show a deterioration in the socio-economic situation in the Valencia Region over the past ten years. Currently, 26% of the area's population is at risk of poverty and nearly 12% live in conditions of social exclusion. This represents an increase of 0.7 and 1.4 percentage points, respectively, over the decade.

This trend differs from the national average for Spain as a whole, where the indicators have improved (down about 3 percentage points), reaching 19.5% for poverty risk and 8% for exclusion.

Economic costs of poverty eradication

According to an analysis prepared by the Ramón Areces Foundation and Ivie, completely eradicating poverty in the Valencia Region would require a financial outlay of 2.5% of regional GDP, which translates to more than 3 billion euros per year. Combating the deepest social exclusion, on the other hand, would involve an expenditure of €1.18 billion per year (1% of regional GDP).

Nationwide, the differences between regions are significant:

• Regions with the greatest needs:Andalusia, the Canary Islands and Murcia (requiring more than 3% of GDP).
• Regions in the best situation: Basque Country, Madrid and Aragon (require a maximum of 1% of GDP).
• National average: 1.8% of GDP (about 24 billion euros per year).

Jobs don't always protect against poverty

The report points out an important phenomenon: despite the increase in employment, economic development does not translate directly into poverty reduction. It is defined as income below 60% of the national median, while extreme poverty (exclusion) is income below 40% of the median.

A surprising fact is that 36.5% of those at risk of poverty in Valencia are employed. Statistics show that about one in five workers in the region are at risk, leading to the conclusion that simply having a job does not guarantee financial stability.

Demographics: Women and children most vulnerable

The problem of poverty in the Valencia Region affects different social groups with varying intensity:

• Gender: The situation for women has worsened over the past decade, with the hazard rate rising from 24.7% to 27%. At the same time, the rate among men has seen a slight decline (from 25.8% to 25%).
• Age: The most disturbing data concerns minors. In the Valencia Region, the at-risk-of-poverty rate among those under the age of 18 is as high as 36.1%, an increase of nearly seven percentage points in ten years. This phenomenon is part of a broader problem of high levels of child poverty recorded throughout the country.