In 2023, about 14% of employed households in Cyprus, totaling 127,236 individuals, are at risk of poverty, earning an annual income of €11,324 or less, highlighting the struggles of many despite having jobs. The economic landscape is stark, with 28% of the population living on less than €14,155 a year, revealing deep wage disparities and growing financial insecurity amidst rising living costs.
What percentage of employed households in Cyprus are at risk of poverty?
Approximately 14% of employed households in Cyprus, equating to 127,236 individuals, are at risk of poverty as of 2023, with an ‘equalised disposable income’ of €11,324 or less annually. This reflects the challenges of wage disparities and living costs in Cyprus.
Understanding the Risk of Poverty in Employed Households
Recent data from the Cyprus Statistical Service has revealed an unsettling reality: approximately 14% of gainfully employed households are at risk of poverty as of 2023. This percentage corresponds to 127,236 individuals who have an ‘equalised disposable income’ of €11,324 or less annually. Despite holding jobs, these residents find themselves struggling to make ends meet. The situation highlights the growing concerns over wage disparities and the cost of living in Cyprus.
Equally worrying is the fact that 28% of the entire population falls into the ‘lower income bracket,’ surviving on less than €14,155 each year. Notably, there has been a slight fluctuation in this statistic over the previous years, with 2021 seeing a 27.4% share and 2022 a slightly higher rate at 29.4%. These figures point to the volatility and fragility of the lower-income sector in Cyprus’s economy.
The Income Bracket Breakdown
The ‘middle income bracket’ appears to be the most populous, comprising 64.1% of the population in 2023, which is a minimal increase from 63.1% in the previous year. Individuals in this category have a disposable income ranging between €14,156 and €37,746 annually. This bracket seems to be more stable, suggesting that a majority of Cypriots fall within a moderate economic range.
On the other end of the spectrum, 7.9% of the population is categorized within the ‘higher income bracket,’ having an annual disposable income exceeding €37,747. This group experienced a slight rise from 7.6% in 2022. Interestingly, the median disposable income for those in the higher bracket was about €46,711, almost double the national equalised median income, signaling significant income inequality.
The Challenges of Debt and Living Costs
Despite income levels, financial struggles are a common thread across all brackets. Concerningly, 1.2% of the ‘higher’ income class are falling behind on their loan repayments or rent. This number increases sharply in the ‘middle’ income bracket, with 9.4% of people facing similar arrears. The situation is particularly dire for those in the ‘lower’ income bracket, where a staggering 31.6% are struggling with overdue loans or rent payments, underscoring the broader implications of economic hardship in Cyprus.
These percentages are more than just numbers; they represent individuals and families who face the daily stress of financial insecurity. With the cost of living on the rise and wages not always keeping pace, many Cypriots find themselves in precarious financial positions, despite being employed.
Income and Economic Implications for Cyprus
The data on household incomes and the risk of poverty is a sobering reminder of the economic challenges many face in Cyprus. It is essential to consider the impact of these figures on the broader economy and the well-being of the population. With a significant portion of the population either at risk of poverty or in the lower income bracket, economic growth and consumer spending may be hampered, potentially leading to broader issues such as reduced investment and economic stagnation.
The disparity between the different income brackets also suggests that inequality is an issue that needs to be addressed. Reducing this gap and ensuring that more households can move into the middle and higher income brackets could lead to a more robust and resilient economy. This socio-economic balancing act is critical for the stability and prosperity of Cyprus and its people.
FAQ on Employment and Poverty in Cyprus
What percentage of employed households in Cyprus are at risk of poverty?
Approximately 14% of employed households in Cyprus, equating to 127,236 individuals, are at risk of poverty as of 2023. These households have an ‘equalised disposable income’ of €11,324 or less annually, indicating significant challenges related to wage disparities and rising living costs.
How does the overall income distribution in Cyprus look?
In 2023, about 28% of the total population lives on less than €14,155 a year, placing them in the lower income bracket. Conversely, the ‘middle income bracket,’ which has an income range between €14,156 and €37,746, includes 64.1% of the population. Meanwhile, 7.9% belong to the higher income bracket, with an annual disposable income exceeding €37,747.
What challenges do households in different income brackets face?
Despite varying income levels, financial struggles are prevalent across all brackets. Notably, 31.6% of individuals in the lower income bracket are struggling with overdue loans or rent payments. This issue is also significant in the middle income bracket, where 9.4% face similar challenges. Even among the higher income bracket, 1.2% are falling behind on loan repayments or rent, highlighting widespread financial insecurity in Cyprus.
What are the implications of income inequality in Cyprus?
The disparity in income distribution suggests that inequality is a pressing issue that needs to be addressed. With a considerable portion of the population at risk of poverty or in the lower income bracket, economic growth and consumer spending may be hindered. Addressing these disparities could be crucial for fostering a more resilient economy, enhancing stability, and promoting the overall prosperity of Cyprus and its residents.
