The proportion of people at risk of poverty or exclusion in Austria, at 17.7 percent of the total population, remained almost the same in 2023 compared to the previous year (17.5 percent). However, the number of people in absolute poverty has increased, as Statistics Austria announced on Thursday.
In 2023, 336,000 people (3.7 percent of the population in private households) in Austria stated that they might not afford the expenses of daily life, which are considered a minimum standard of living according to the EU definition. Anyone who says they cannot afford at least seven of 13 EU-defined characteristics and activities of daily life (“absolute poverty measure”) is considered to be significantly materially and socially disadvantaged, including unexpected expenses of 1,370 euros or a vacation per person Year. In 2022, 201,000 people (2.3 percent) were affected by this poverty.
According to the survey, 88,000 children and young people were affected by absolute poverty, which corresponds to more than doubling the number compared to the previous year (2022: 36,000 people under the age of 18). Among those under 18, the proportion of those who were significantly materially and socially disadvantaged was 5.3 percent, while among older people aged 65 and over it was 1.9 percent. People in single-parent households have the highest risk with a rate of 15.3 percent. Families with at least two adults and three or more children were also disproportionately affected, at 8.5 percent.
1,572 euros as the at-risk-of-poverty threshold in a single-person household
In addition to these absolute poverty situations, household income is also used as a measure. The at-risk-of-poverty threshold for a one-person household was determined to be 1,572 euros per month. In 2023, 1,338,000 people or 14.9 percent of the population had low household income below a threshold of 60 percent of this median value (the change compared to 2022 is not statistically significant here). According to the EU definition, these people were considered to be at risk of poverty, but this figure does not allow any statements to be made regarding the extent to which households can get by with their disposable income, emphasizes Statistics Austria.
Of the 336,000 people for whom the European minimum standard of living was not affordable, 58 percent (194,000 people) had a relatively low household income. They were both significantly materially and socially disadvantaged and at risk of poverty due to their income. However, there were also 142,000 people whose income was above the at-risk-of-poverty threshold but who still led a disadvantaged lifestyle. Conversely, of the 1,338,000 people at risk of poverty, 15 percent were also “significantly materially and socially deprived”, the rest (85 percent) did not have to forego several common goods and activities for financial reasons.
Risk factor of low employment
One risk factor is little or no employment: more than half (56 percent) of those who were unemployed for twelve months or longer were at risk of poverty, and over a quarter (28 percent) were significantly materially and socially disadvantaged.
Anyone who is either significantly materially and socially disadvantaged, i.e. affected by absolute poverty, or whose household has less than 60 percent of the median income or is only marginally involved in working life is considered to be at risk of poverty or exclusion – i.e. anyone who is at least one of these three Belonging to risk groups for social exclusion. According to the most recent survey on income and living conditions (EU-SILC), 1,592,000 people (17.7 percent of the population in private households) were at risk of poverty or exclusion according to the EU definition in 2023. These included 376,000 children and young people under the age of 18. According to Statistics Austria, the differences compared to the previous year are too small to be considered a statistically reliable change.
“The high inflation in particular has exacerbated the situation of people affected by poverty,” said Social Affairs Minister Johannes Rauch (Greens) in a press release, referring to the measures taken by the government. In the coming years, structural reforms must be addressed to prevent poverty in Austria, he once once more called for basic child security.
