Income poverty in Czech Republic is found predominantly among the unemployed, but can also be found in different aspects of the region including the working poor, which make up a small percentage of the population. People may also be at risk of poverty by social policy tools and low median wages. Over the years, though, the risk has become less likely and there have been small successes for the region. Some things to know about poverty in the Czech Republic include:
- The risk of poverty in Czech Republic reduced after the country joined the EU. Also as a result, Czech Republic now has the lowest poverty rates in the EU. Although salaries have gone up, so too have expenses, and so about 1.5 million people live on or below the poverty line. But thankfully, the overall percentage has gone down slightly compared to the past year.
- The Czech Republic is a developed country with a high-income economy. Its economy revolves around its employment rate, which the region is adamant on maintaining.
- With the pressure on public funds, Czech Republic’s focus has been on increasing employment levels rather than supporting the working poor. As a result, the region has one of the lowest unemployment rates of 5.2 percent as of 2016.
- Three percent of the working population is the working poor. Czech Republic has the lowest minimum wage based on the median national wage, and legislation of minimum wages prevent related issues of poverty.
- The country has a prosperous market economy with one of the highest GDP growth rates. Its exports largely consist of automobiles that comprise some 80 percent of GDP.
There have been actions taken to reduce the possibility of the recession on the working poor — that is, maintaining employment levels that support the economy. Although there is no set result on this concept, the goal of reducing poverty in Czech Republic is ever-present in the country.
– Brandi Gomez