DREM releases data from the 2024 Survey on Income and Living Conditions

The Regional Directorate of Statistics of Madeira (DREM) conducts an annual Survey on Income and Living Conditions (SILC) in the Autonomous Region of Madeira (ARM). This statistical operation falls within the national scope and is under the responsibility of Statistics Portugal (INE), harmonised and regulated at the European level. The main objectives are to produce statistics on income distribution, living conditions, and social exclusion.

The goals of the survey can be summarised and cover:

• • • Composition and distribution of households and persons.
    • Living conditions (housing and comfort conditions, financial capacity, etc.).
    • Impact of social transfers on poverty and social exclusion.
    • Connection between poverty and social exclusion and economic activity, employment, socio-family typology, education, health, and housing.

In this context, DREM has released today the results of the survey conducted between April and July 2024, covering a sample of 3,055 households. Indicators related to poverty and economic inequality were constructed based on the annual net equivalised monetary income of 2023, excluding other sources of income such as in-kind wages, self-consumption, self-supply, and self-housing.

At-risk-of-poverty rate in the Autonomous Region of Madeira approaches the national average

The at-risk-of-poverty rate, calculated as the proportion of the population whose equivalent income falls below the poverty line (7,588 euros annually, representing 60% of the median equivalised disposable income per equivalent adult for Portugal), was 16.6% in the country in 2023 (a decrease of 0.4 percentage points compared to 2022). In the ARM, this rate reached 19.1% (a decrease of 5.7 pp compared to 2022). This is the lowest value in the ARM since the starting time of the time series for this variable (2017).

The at-risk-of-poverty rate with the national poverty line reduced in six of the country's nine NUTS2 regions: Norte, Oeste e Vale do Tejo, Grande Lisboa, Algarve, Autonomous Region of Azores (ARA) and the Autonomous Region of Madeira (ARM). Only Centro, Península de Setúbal and Alentejo regions recorded increases compared to 2022. The lowest value was recorded in Grande Lisboa (12.9%) and the highest in the ARA (24.2%). The region of the country with the highest reduction in the risk of poverty rate was the ARM (-5.7 pp), followed by Algarve (-3.3 pp) and Oeste and Vale do Tejo (-2.0 pp). In turn, the largest increase was in Alentejo (+2.1 pp), followed by Península de Setúbal (+1.8 pp) and Centro (+1.6 pp).

The at-risk poverty rate can also be calculated based on regional poverty lines, which have the advantage of reflecting different socio-economic conditions, including different levels of living cost. In each NUTS2 region, the regional poverty line corresponds to the proportion of inhabitants in that region living with those who live on equivalent net monetary incomes of less than 60% of the median of the distribution of equivalent net monetary incomes in that same region. The regional poverty line increased from 6,371 euros per year in 2022 to 7,240 euros in 2023, corresponding to 60% of the median income per equivalent adult in the Region (10,618 euros in 2022 and 12,066 euros in 2023).

The at-risk poverty rate based on the regional poverty line in the ARM, corresponding to 60% of the median annual net monetary income per equivalent adult in the Region, was 17.0%. According to this indicator, Oeste e Vale do Tejo region recorded the lowest value (13.9%), while Península de Setúbal (20.0%) and Grande Lisboa (19.2%) showed the highest percentages, followed by the ARA with 18.3% and the ARM, with 17.0%.

Severe material and social deprivation rate in the Autonomous Region of Madeira decreases for the fourth consecutive year

As part of the Europe 2030 strategy, the concept of material and social deprivation was defined for monitoring poverty and social exclusion. Indicators of material and social deprivation are based on a set of thirteen items related to the social and economic needs and durable goods of households. Of the thirteen items of material and social deprivation, seven pertain to the family, and six to the personal level.

The material and social deprivation rate is expressed as the proportion of the population in which at least five of the following thirteen difficulties occur:

- Difficulties at the household level:

1. Lack of capacity to immediately cover an unexpected expense close to the monthly value of the poverty line (without asking for financial help).

2. Lack of capacity to pay for a week of vacation per year, away from home, covering accommodation and travel expenses for all members of the household.

3. Delay, due to economic difficulties, in any regular payments related to rent, credit instalments, or current expenses of the main residence, or other expenses not related to the main residence.

4. Lack of financial capacity to have a meal of meat or fish (or a vegetarian equivalent) at least every 2 days.

5. Lack of financial capacity to keep the house adequately heated.

6.  Unavailability of a car (passenger or mixed) due to economic difficulties.

7. Inability to replace used furniture.

- Difficulties at the personal level (16 years or older):

8. Inability to replace used clothing with some new clothing (excluding second-hand clothing).

9. Inability to have two pairs of shoes of suitable size (including one pair of shoes for all weather conditions).

10. Inability to spend a small amount of money on oneself weekly.

11. Inability to participate regularly in a leisure activity.

12. Inability to meet friends/family for a drink/meal at least once a month.

13. Inability to have access to the internet for personal use at home.

For items of material and social deprivation, and for overall deprivation indicators, the household situation is replicated for all its members, regardless of age. For items of deprivation collected at the personal level, children under 16 are considered deprived if at least half of the persons aged 16 or older in the household report being deprived.

In the ARM, in 2024, the severe material and social deprivation rate was 5.4%, marking a decrease of 0.9 pp compared to 2023. In the country, this rate was 4.3%, having decreased by 0.6 pp. It is noteworthy that the ARM value is the lowest in the short available series (since 2015). Alentejo (2.2%) is the region with the lowest value in this indicator, contrasting with the ARA (8.2%) on the opposite end.

Very low per capita labour intensity in the Autonomous Region of Madeira reduced to 5.6%

Persons under the age of 65 who, during the income reference period, lived in households where the adult population aged 18 to 64 reported working, on average, less than 20% of the possible working time, excluding students aged 18 to 24; retirees and/or pensioners due to old age or disability; and inactive persons aged 60-64 living in households whose main source of income is pensions, are considered to have very low per capita labour intensity.

In 2023, in the ARM, the proportion of the population under 65 living in households with very low per capita labour intensity was 5.6%, reflecting a decrease of 1.8 pp compared to the previous year. This also stands as the lowest value in the short available series since 2017. The national average was 4.8% (-1.5 pp). By regions, the lowest value was recorded in Algarve (3.6%), and the highest values were in Península de Setúbal (7.6%) and the ARA (6.8%)

Poverty or social exclusion risk rate in the Autonomous Region of Madeira reduced to 22.9% in 2024

The Europe 2030 strategy defines, among other objectives, the reduction of the number of persons at risk of poverty or social exclusion in the European Union by no fewer than 15 million persons by 2030, including at least 5 million children.

The same strategy defines a new indicator for monitoring the population at risk of poverty or social exclusion, which combines conditions of relative poverty, severe material and social deprivation, and very low per capita labour intensity. In accordance with the European convention, the indicator takes as reference the year to which the situation of severe material and social deprivation applies, despite the risk of relative at-risk poverty being the determining element in its trajectory.

In 2024, in the Autonomous Region of Madeira, the at-risk of poverty or social exclusion rate (incomes from 2023) was 22.9%, reflecting a decrease of 5.2 pp compared to 2023, reaching the lowest value since the sample of SILC has representativity at the regional level. The national average remained unchanged at 19.7% decreasing 0.4 pp compared to the previous year. The ARA recorded the highest value (28.4%), while Grande Lisboa had the lowest rate (16.5%). In addition to the ARA and the ARM, Peninsula de Setúbal (21.8%) and Norte (21.0%) were the regions that presented at-risk of poverty rates or social exclusion higher than the national average.

Indicators of inequality in income distribution decrease in 2023

The Gini coefficient and the S80/S20 ratio allow the assessment of asymmetry in the distribution of incomes in the ARM and in the country, reflecting income differences among all population groups.

The Gini coefficient synthesizes in a single value the asymmetry of the income distribution, taking values between 0 (when all persons have equal income) and 100 (when all income is concentrated in a single individual). In 2023, regarding the ARM, this indicator assumed a value of 31.1%, a 1.6 pp decrease compared to the previous year. At the national level, the Gini coefficient recorded a 1.8 pp decrease, going from 33.7% in 2022 to 31.9% thus maintaining the situation observed in the previous year, in which the ARM is below the national value, that is, with lower income inequality. Among the 9 NUTS 2 regions, only Oeste and Vale do Tejo (28.8%), Alentejo (30.0%) and Centro (30.2%) have a Gini coefficient lower than the ARM. The Autonomous Region of the Azores registered the greatest asymmetry (33.8%), followed by Grande Lisboa (32.9%), the only regions with a Gini coefficient higher than the national value.

The S80/S20 ratio, defined as the ratio between the proportion of total income received by the top 20% of the population with the highest incomes and the part of the income earned by the bottom 20% of the lowest incomes, reached a value of 4.9 in 2023 (5.2 in 2022). In the country, this indicator also decreased, going from 5.6 in 2022 to 5.2 in 2023. By region, the Oeste e Vale do Tejo region has the lowest ratio (4.3) and the ARA the highest (5.9). After Oeste e Vale do Tejo, the lowest values ​​of the S80/S20 ratio are recorded by Alentejo (4.5), Centro (4.7), ARM (4.9) and Algarve (5.1), all below the national value.

For mor information, please click on:

• Time series

Back

• Prev
• Next