In spite of its position as one of the European Union’s biggest economies, poverty is still a significant issue in Spain. In 2023, there were 20.4% of people, according to data from the Spanish National Institute of Statistics (INE), who lived under the poverty line or were subject to social exclusion. Among these include low-income families; those with severe material deprivation or low work intensity, and so forth. This figure has fallen slightly in recent years but is still above the EU average. It shows that there is an unequal distribution of income and an undercurrent of economic vulnerability in this land.

The Impact of the 2008 Financial Crisis

The economic fallout from the 2008 financial crisis took its toll on Spain as well. As perforated holes with no dollar signs continued to emerge all over the country, her economy saw skyrocketing unemployment and an increase in poverty rates unparalleled in decades past. The economy has recovered steadily, but many of the cuts made during austerity measures—especially in social protection and public services—continue to affect vulnerable groups fiercely today. Although the unemployment rate in Spain soared to 26.1% in 2013 before finally passing, it has since dropped to around 12% (2024). Precarious employment and underemployment are still more common than full-time work among young people in particular.

Exposed Demographics

Women and children, immigrants and the elderly are particularly vulnerable groups in Spanish society who suffer frequently under poverty. The child poverty level, for instance, was nearly 28.9% in 2023. This makes it one of the highest child poverty levels among all EU member states. Single-parent families, often headed by women, face increased risks of poverty due to their lower income levels and restricted access to affordable childcare as well as housing. Moreover, Spain’s aging population has become difficult in the face of an inadequate pensions system, for many retired citizens find their pensions cannot keep up with inflation.

Regional Differences

In Spain, poverty levels vary widely from region to region. On average, the poverty rate in southern regions like Andalusia and Extremadura is higher than that of wealthier, more industrialized areas such as Madrid and the Basque Country. For example, in 2023, the AROPE rate (At Risk of Poverty or Social Exclusion) for Andalusia stood at 37.5%, while just across the border, an identical group was living on only 12.5% of what most others enjoyed as income.

Solutions and Efforts

In response to the high poverty levels in Spain, both government and non-governmental organizations introduced a variety of initiatives. One of the most important government projects is called ‘Ingreso Mínimo Vital’ or Minimum Livelihood Income, which was launched in June 2020. This national welfare program seeks to guarantee a minimum income for the most economically vulnerable households. With almost 700,000 households and more than 1.6 million people receiving support by February 2024, the project also built job-seeking services and social programs into one cohesive whole to promote sustainable social integration.

Another notable project is Cáritas Española, an NGO with a long history of battling poverty and marginalization in Spain. Direct humanitarian aid (such as food, housing and education services) is combined with pressure for structural policy change. In 2023, Cáritas helped more than 2.5 million people in Spain in a mixture of urgent assistance and social development schemes. At the same time as it makes these appeals for such reforms on behalf of marginalized groups, the organization also works politically to publicize and make public their plight.

Looking Ahead

Despite Spain’s economic achievements and social programs, poverty continues to be an issue. Among children, women, and the elderly, it is particularly problematic, and the level varies greatly by region. While unemployment has fallen (thanks to post-2008 recovery), the absence of rights-cabinet work and regional inequalities mean that the justice obstacle remains strong. Programs like Spain’s Ingreso Mínimo Vital or the activities of Cáritas Española indicate that if we fixate on supporting particular systems and making policies which embrace everyone, there will be progress. 

– Simone Sanchez

Simone is based in Huntington, NY, USA and focuses on Business and New Markets for The Borgen Project.

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