Estonia’s poverty rate did not change in 2020, as the number of people who lived in absolute poverty or at risk of poverty declined by 0.1%, data from Statistics Estonia showed. The rate rose among single parents but fell among larger families.
The data showed 2.2% of Estonia’s population lived in absolute poverty and 20.6% were at risk of poverty last year.
Anet Muursoo, leading analyst at Statistics Estonia, said absolute poverty indicated the share of the population who were not able to meet their basic needs.
“Last year, approximately 28,700 people lived in absolute poverty, which was somewhat less than in the previous year, but considering that their monthly income, taking into account household composition, was less than EUR 220, there was definitely room for improvement,” said Muursoo.
The at-risk-of-poverty rate reflects income inequality in a country. In 2020, approximately 270,800 persons lived at risk of poverty, as their equivalized monthly income was less than EUR 631, which was 60% of the median equivalized yearly disposable income of household members.
“Essentially, a person living at risk of poverty may earn a good income, but the inequality arises from the fact that other people have an even higher income. A slight fall could be noticed in the at-risk-of-poverty rate, but the change is minimal and the indicator is rather at the same level as in the prior years,” Muursoo said.
Compared to 2019, the at-risk-of-poverty and absolute poverty rates declined among couples with three or more children and among young people (18-24-year-olds), while it rose among single parents.
“The at-risk-of-poverty rate was highest for 65-year-old and older persons living alone. The greatest change occurred for single parents: year on year, the share of single parents living at risk of poverty grew by a tenth. The absolute poverty rate continued to be highest among the unemployed,” Muursoo added.
The at-risk-of-poverty rate was the highest in Ida-Viru (31.4%), Voru (30 %) and Valga (29.3%) counties.
It was the lowest in Harju (16.5%), Tartu (18.8%) and Laane-Viru (19.5%) counties.
The absolute poverty rate was the highest in Southern Estonia (2.5%) and the lowest in Western Estonia (1.4%).
In 2021, the share of people living in deprivation, i.e. people who cannot afford various items commonly available in the society, was slightly smaller than in previous years, amounting to 4.9% of the Estonian population.
Deprivation affects persons aged 65 and over the most (7.8%) and 18-24-year-olds the least (2.5%).
Over the year, deprivation decreased the most for children and youth. (ERR/Business World Magazine)