economy

Poverty in Germany: 17.6 million people are at risk of social exclusion

The latest data from the German Federal Statistical Office (Destatis) reveals a worrying economic and social reality in Europe's largest economy. The office announced that approximately 17.6 million people in Germany were at risk of poverty or social exclusion last year. This figure represents 21.2% of the total population, highlighting the growing challenges facing large segments of German society.

Relative stability in poverty rates amid economic challenges

Comparing these figures with the 2024 statistics shows that the rate remained almost unchanged, at 21.1%. These results are based on preliminary data from the mini-census, which relied on a comprehensive survey that included polling 47,400 households and 81,200 individuals over the age of 16, with the aim of accurately monitoring income levels and living conditions.

This announcement comes in a volatile global and local economic context, where inflation rates and labor market changes directly affect citizens' purchasing power, making a large segment vulnerable to slipping below the poverty line despite the overall strength of the German economy.

Income thresholds and poverty risk indicators

According to details provided by the office, approximately 13.3 million people, or 16.1% of the population, had incomes below the poverty line. This is a significant increase compared to 2024, when the figure was 15.5%.

The European Union uses a specific definition of poverty risk, classifying a person as at risk if their income is less than 60% of the median income of the total population. Accordingly, this threshold for individuals living alone has been set at €1,446 per month, an increase from the 2024 threshold of €1,381, reflecting rising living costs.

As for households consisting of two adults and two children under the age of 14, the poverty risk threshold has risen to €3,036, compared to €2,900 in the previous year.

The most affected groups in society

The data showed a clear disparity in the distribution of poverty rates among different social groups, with alarming rates exceeding the general average being recorded among specific groups:

  • The unemployed: recorded the highest rate of exposure to the risk of poverty at 64.9%, which confirms the direct relationship between unemployment and social vulnerability.
  • Single-person households: The risk rate among households whose members live alone was 30.9%.
  • Single-parent households: Households supported by one parent accounted for 28.7%.
  • Retirees: The percentage among them reached 19.1%.

EU standards for measuring poverty

It is worth noting that classifying people as being at risk of poverty or social exclusion according to EU standards does not depend solely on monetary income, but is achieved when at least one of three main conditions is met:

  1. Income must be below the nationally defined poverty risk threshold.
  2. The family suffers from severe material and social deprivation (such as the inability to pay bills or provide adequate heating).
  3. To live in a family with very low participation in the labor market.

These figures put additional pressure on decision-makers in Berlin to strengthen social safety nets and adopt economic policies that ensure a fairer distribution of wealth in light of current challenges.

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