According to a study published by Eurofound on Tuesday 5 September, those at risk of relative in-work poverty in Europe increased from 8% in 2007 to 10% 2014.
According to Eurofound, this trend can be explained by the lengthy economic crisis that has affected the European Union since 2008, as well as the increase in non-standard employment. Eurofound considers that member states particularly focused their efforts on employment, perhaps, to the disadvantage of income, which has effectively increased the number of working poor.
It should be pointed out that in-work poverty is calculated on median household income in a member state. The working poor are those who have worked for more than half the year and have a household income that is below w 60% of the national household median income level.
Across the EU in 2014, the proportion of workers in poverty stood at 9.6%. Eurofound, points out, however, that if material deprivation (based on an ability to pay the rent, pay off loans and bills, heat the house; tackle unexpected expenses; take holidays; or own a television, washing machine, car or telephone), then this rate increases to 12.8%.
According to the study, the countries that have experienced the highest relative in-work poverty rates over this period are Estonia (+4%), Bulgaria (+3.3%) and Germany (+2.4%). In contrast, the member states that have the lowest in-work poverty rates are the Czech Republic, Finland and Belgium (the precise figures for these three latter countries have not yet been provided but their level is below 5%).
The in-work poverty rate in Greece was reversed between 2007 and 2014. This also occurred in Ireland but to a lesser extent. Eurofound says that this can be explained by the fact that median income has fallen in these countries. With more than 15% of workers experiencing relative in-work poverty, Greece is the second country with the highest proportion of working poor, after Romania, which is close to 20%.
To consult the study please go to: http://bit.ly/2wkFCO6. (Pascal Hansens)