COVID-19 impact: Households income

Data of the survey on Income and Living Conditions 2021 carried out by the Central Statistical Bureau (CSB) show that during the last year income of more than one fifth (21.7 %) of Latvian households has reduced, of 59.8 % – has not changed, but of 18.5 % – has increased.

Both positive and negative changes in income are more explicit in cities - 20.2 % of urban households indicated an increase in income (rural – 14.3 %, respectively), but 23.2 % of urban households and 18 % of rural households indicated a decline in income. The situations between Riga households are clearly distinct – 26.1 % indicated an increase in income, but 28 % – a decrease.

In income forecasts for the next 12 months, the majority (76.6%) of households forecast that their total income will not change, 16.7 % consider that their income will increase and only 6.8 % expect a drop in income. There are slight differences between the forecasts of urban and rural households – 19 % of urban households (27.2 % in Riga) and only 11.1 % of rural households expect income to grow in the next 12 months. 74.2 % of urban households (65.1 % in Riga) and 82.3 % of rural households consider that income will remain unchanged.

More than a half (56.1 %) of households who indicated a decrease in income in the last 12 months as a main reason mentioned reduced working time, wage or salary (same job), as well as reduction in self-employment (involuntary). On the other hand, more than a quarter (29.1 %) mention loss of job/unemployment/ bankruptcy of (own) enterprise as the main reason for the decrease in household income.

In turn, an increase in household income in more than half of the cases (55.3 %) was caused by a rise in social benefits, which can be explained by state support measures for children and seniors during the Covid-19 pandemic. The largest number of such answers is for single seniors aged 65 and over (76 %) and for lower-income households (69 % for the 1st income quintile group, 68.2 % for the 2nd income quintile group). Households mention re-evaluation of salary (15.6 %) and increased working time/ wage or salary (same job) as the second and third most common reasons for income growth (11.5 %).

The CSB conducts annual survey on Income and Living Conditions (EU-SILC), which also provides information on the impact of Covid-19 crisis on the mental health, income, opportunities to work and study remotely of the population. In 2021, data have been obtained from 6.5 thousand households and 11.7 thousand responses from individuals. The CSB asks population having received a letter or message from the CSB to be responsive and participate in the survey. The CSB would like to thank all respondents who have already taken part in the survey to assess impact of Covid-19 on the well-being of Latvian population.

Media requests:
Communication Section
E-mail: media@csp.gov.lv
Phone: +371 27880666

More information on data:
Darja Goreva
Social Statistics Data Compilation and Analysis Section
E-mail: Darja.Goreva@csp.gov.lv
Phone: +371 67366997