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DREM releases final results of the Survey on Income and Living Conditions 2018

On November, 30, the Regional Directorate of Statistics of Madeira (DREM) released, for the first time, the provisional data of the Survey on Income and Living Conditions (EU-SILC), a nationwide statistical operation conducted by Statistics Portugal (INE), which is coordinated in the Region by DREM.

In Madeira, 2,302 interviews were conducted between March and May 2018.

It is also a harmonised statistical operation in the European Union, carried out within the framework of specific EU legislation (Regulation (EC) No 1177/2003) and it aims to produce statistics on the distribution of income, living conditions and social exclusion, allowing the analysis of:

  • composition and income distribution of households and individuals;
  • living conditions (conditions of housing and comfort, financial capacity, etc.);
  • the impact of social transfers on the level of poverty and social exclusion;
  • the link between poverty and social exclusion and economic activity, employment, socio-family typology, education, health and housing.

EU-SILC is held in Portugal since 2004 and until 2017 only allowed the dissemination of data for the country. However, in 2015, INE began the process of regionalization of this survey, which was carried out in a longitudinal component of 4 years, that is, between that year and 2018, its sample was successively increased in order to allow, in 2018, the dissemination of data broken down by NUTS2 level.

DREM releases today the final results of the 2018 survey concerning 2017 income. Some of the indicators released last November are revised and new variables such as material deprivation rate, at-risk-of poverty or social exclusion rate and inequality in income distribution are now available. In the first two cases the information relates to 2018.

Median equivalised disposable income in the Autonomous Region of Madeira stood below national average

The median equivalised income in the Autonomous Region of Madeira was EUR 8 326, below the national value, which was EUR 9 346. Breaking down the data by NUTS 2 region, the data show that the highest value was registered in Área Metropolitana de Lisboa (EUR 10 943) and the lowest in the Autonomous Region of Azores (EUR 7 517).

At-risk-of-poverty rate in 2017 was 27.5%

The national at-risk-of-poverty threshold (which corresponds to 60% of median equivalised income) stood at EUR 5 608, while the regional at-risk-of-poverty threshold for the Autonomous Region of Madeira was EUR 4 996. Área Metropolitana de Lisboa leads in this indicator (EUR 6 566), while the Autonomous Region of Azores has the lowest threshold (EUR 4 510).

The at-risk-of-poverty rate (calculated with the national at-risk-of-poverty threshold) dropped to 17.3% in the country, while in the Autonomous Region of Madeira it stood at 27.5%. Área Metropolitana de Lisboa had the lowest value (12.3%) and the Autonomous Region of Azores, the highest (31.6%).

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The at-risk-of-poverty rate (calculated with the regional at-risk-of-poverty thresholds) indicates that the Autonomous Region of Madeira and Azores have the highest values (22.3% and 21.7%). Alentejo (14.2%) had the lowest value.

Very low work intensity in the Autonomous Region of Madeira stood above 10%

Persons in a very low work intensity condition are those aged less than 60 who, in the income reference period, lived in households where adults aged 18-59 (excluding students) worked on average less than 20% of the labour potential. This situation can enhance the risk of social exclusion of a household.

In 2017, there were approximately 20 thousand persons under 60 years in a situation of very low work intensity, corresponding to a 10.4% share. In this indicator, the highest value was in the Autonomous Region of Azores (11.8%) and the lowest in Área Metropolitana de Lisboa (5.5%). The national average was 7.2%.

Severe material deprivation rate in the Region was 9.4%

Material deprivation, i.e., the lack of access to a set of economic needs and durable goods, is also a factor that can enhance the risk of social exclusion.

If there is an enforced lack of at least four out of the following nine items, due to economic difficulties, there is a case of severe material deprivation : a) capacity to face unexpected financial expenses (without asking for financial help); b) capacity to afford paying for one week's annual holiday away from home, paying travel and accommodation costs for all household members; c) capacity to pay on time for mortgage or rent payments, utility bills, hire purchase installments or other loan payments; d) capacity to afford a meal with meat, chicken, fish (or vegetarian equivalent) every second day; e) capacity to pay for keeping its home adequately warm; f) capacity to afford for a washing machine; g) capacity to afford for a color TV; h) capacity to afford for a telephone (including a mobile phone); i) capacity to afford a car.

In 2018, there were in the Autonomous Region of Madeira, approximately 24 thousand persons in severe material deprivation, corresponding to a 9.4% rate. Once more, the Autonomous Region of Azores had the highest value (12.0%), and Alentejo (4.5%) the lowest. The national average was 6.0%.

At-risk-of poverty or social exclusion rate in the Autonomous Region of Madeira in 2018 was 31.9%

In the context of Europe 2020, an indicator was set out regarding the population at-risk-of-poverty or social exclusion, joining the concepts of relative at-risk-of-poverty rate – people with an annual equivalent income below the poverty threshold – and severe material deprivation with the concept of very low per capita labour intensity.

In 2018, in the Autonomous Region of Madeira, approximately 81 thousand persons were in at-risk-of poverty or social exclusion, representing a 31.9% rate. The Autonomous Region of Azores has the highest rate (36.4%) and the Área Metropolitana de Lisboa the lowest (16.7%). The country’s rate was 21.6%, meaning that 2.2 million persons in Portugal were in at-risk-of-poverty or social exclusion.

Strong inequality in income distribution in the Region and in the country

Two indicators – the Gini coefficient and the S80 / S20 ratio - make it possible to assess asymmetry in income distribution in the Autonomous Region of Madeira and in the country.

The Gini coefficient synthesizes into a single value the asymmetry of the income distribution, assuming values between 0 (when all individuals have the same income) and 100 (when the total income is concentrated in a single individual). In the Autonomous Region of Madeira, this indicator had the value of 33.2%, slightly above the national value (32.1%). The Autonomous Region of Azores had the highest inequality (37.9%) and Alentejo the lowest (28.9%).

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The S80/S20 ratio is the ratio of the net equivalent monetary income received by the 20% of the population with the highest income to that received by the 20% of the population with the lowest income. In the Autonomous Region of Madeira the income by the top 20% wealthiest was 6.2 times higher than the 20% poorest. At the national value, this ratio stood at 5.2. As it happens with the Gini coefficient, the Autonomous Region of Azores had the highest inequality (7.3) and Alentejo the lowest (4.4).

International Statistical Cooperation

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International Statistical Cooperation

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Statistical Literacy

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Statistical Literacy

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