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Poverty and social inclusion

In 2008 12.4% of the population was considered at risk of poverty. Projected to the Austrian population as a whole the figure – with a 95% reliability probability – is between 11.2% and 12.9%, i.e. between 917 000 and 1 060 000 Austrians can be considered as being at risk of poverty.

The EU-SILC survey has been used since 2003 to assess the poverty risk; between 2003 and 2007, the poverty rate fluctuated between 12% and 13% (2007: 12.0%, 2006: 12.6%, 2005: 12.3%, 2004: 12.8%, 2003: 13.2%), however given the random fluctuations these differences are not significant and therefore cannot be interpreted.

Based on EU-SILC (European Community Statistics on Income and Living Conditions) each year results on poverty and social inclusion are published. On its website Eurostat also provides time series up to 2007 and social inclusion indicators that have become available so far for 2008: Indicators of the social inclusion strand

People are considered to be at risk of poverty or affected by the risk of poverty if their equivalised household income is below an at-risk-of-poverty threshold of 60% of the median. In 2008, the equivalised income median was €19 011. The at-risk-of-poverty threshold was therefore €11 406 for a single-person household, i.e. around €951 a month.

A measure of the intensity of the poverty risk is the at-risk-of-poverty gap, which is the difference between the median income of people at risk of poverty and the at-risk-of-poverty threshold expressed as a percentage of that threshold. Households at risk of poverty have a median income that is around 15% lower than the threshold value.

Income strongly influences actual living conditions. On the basis of a Survey conducted by Statistics Austria the criteria for deprivation were revised in 2007. 2008 40% of the population with a very low income at risk of poverty cannot afford basic needs such as being able to heat their homes adequately or replace worn clothing. People whose income is well below the at-risk-of-poverty threshold are designated as particular risk groups.

The term poverty refers to situations where low income occurs in combination with visibly disadvantaged living conditions (financial deprivation). In 2008, low income (risk of poverty) and problems in key areas of life such as financial situation, inviting friends, consulting doctors etc. were observed among 6.0% of the population in private households. The low income situation is therefore also visible in the living standard, hence the term manifest poverty. It has been projected that around 492 000 people were affected by manifest poverty in 2008.

The risk of poverty is calculated on the basis of the equivalised household income. This is obtained by dividing the available household income by the number of consumption equivalents in the household. It is assumed that, as the size of the household increases and depending on the age of the children, cost savings are achieved in the household through joint budgeting (economies of scale). For weighting purposes, the EU scale (modified OECD scale) is used to calculate a household’s resource requirements. An adult living on his or her own is taken as the reference point (= consumption equivalent), with an allocated weighting of 1. For each additional adult, the assumed resource requirement increases by 0.5 consumption equivalents. Each child under the age of 14 is weighted with a consumption equivalent of 0.3. So a household comprising a father, mother and child would have a calculated consumption equivalent of 1.8 compared with a single-person household.

More results and information on access to the data for scientific research can be found below. We also provide information on scientific co-operation ventures and international conferences relating to EU-SILC.

Please consult our German website for tables and charts containing further information.

Table(s):
Results (overview): selected indicators on poverty and social inclusion 2008HTMLPDFXLS
Risk-of-poverty 2008 before and after social transfers by sex and ageHTMLPDFXLS