In 2021, the number of population at risk of poverty comprised 22.5 %
Data of the survey conducted by the Central Statistical Bureau (CSB) in 2022 show that 418 thousand persons or 22.5 % of the population of Latvia were at risk of poverty1 in 2021 – 0.9 percentage points less than in 2020. Disposable income2 of this share of population was below the at-risk-of-poverty threshold.
As disposable income of the population grew last year, at-risk-of-poverty threshold went up as well reaching EUR 513 monthly in single person households (EUR 472 monthly in 2020). In households consisting of two adults with two children aged under 14 in 2021 at-risk-of-poverty threshold reached EUR 1 077 monthly (EUR 991 monthly in 2020).
The largest share of population at risk of poverty was registered in Vidzeme (36.2 %) and Latgale (34.6 %), but the smallest in Riga (15.9 %) and Pierīga (16.6 %). In Kurzeme 27.8 % of population were at risk of poverty and in Zemgale – 21.0 %.
The risk of poverty is decreasing among the elderly and single person households with children
The most rapidly at-risk-of-poverty rate has fallen among families consisting of one adult with children reaching 29.4 % last year (since 2020 drop of 8 percentage points). The risk of poverty has also reduced among the elderly population aged 65 and over. In 2021, the share of persons at risk of poverty among this age group was 40.5 % (a drop of 4.1 percentage point since 2020). Moreover, the risk of poverty decreased even faster among the elderly population (aged 65 and over) who lived alone – a fall of 5.2 percentage points (from 73.6 % in 2020 to 68.4 % in 2021).
At-risk-of-poverty rate has grown among the population aged 18-24, their share reaching 19.7 % in 2021 (since 2020 annual rise of 1.6 percentage points). At-risk-of-poverty rate has also grown among families consisting of two adults with one child reaching 15.1 % in 2021 (since 2020 annual growth of 2.5 percentage points). On the other hand, the risk of poverty has not changed significantly among families consisting of two adults and two children (11.7 % in 2020 and 12.1 % in 2021) and of two adults and three or more children (16.5 % in 2020 and 17.1 % in 2021).
The influence of social transfers on the population income continues to increase
The reduction of the risk of poverty was facilitated by state support for the most vulnerable population groups (increased minimum income level for poor households, increased minimum old-age pension, and other support measures), as well as additional support related with measures to limit the infection of COVID-19 (for households with children one-time support payment of EUR 500 per child, for seniors and persons with disabilities a one-time support payment of EUR 200 and a monthly payment of EUR 20 for seniors over 60 and who had completed a full vaccination course against COVID-19 infection).
The role of social transfers3 have become increasingly important in reducing the risk of poverty, including targeted state and local government support to pensions based on lifetime social tax contributions. In 2021, support received from social transfers reduced the share of people at risk of poverty by 18.2 percentage points. In the absence of social transfers, without provision of state and municipal support, including without paying old-age pensions, 40.7 % of the population would be at risk of poverty. In 2020, social transfers diminished risk of poverty by 17.1 percentage point, in 2019 – by 16.8 percentage points and in 2018 – by 16.4 percentage points.
More information on poverty and social exclusion risks is available in the official statistics portal „Poverty and social exclusion in Latvia” and will be available in the informative leaflet “Poverty and social exclusion in Latvia”, which will be published on 16 January 2023.
The source of poverty and social exclusion indicators is the European Union Statistics on Income and Living Conditions (EU-SILC) survey 2022 conducted by the CSB, which was carried out from January 30 to July 18. Residents had the opportunity to fill out the questionnaire online or they were interviewed by phone or face-to-face. 5.8 thousand households and 10.3 thousand respondents aged 16 and over participated in the survey.
The CSB will collect data on household poverty risk in 2022 within the framework of the survey in 2023, and respondents will have the possibility to fill in the questionnaire online.
Methodological explanations
In monetary poverty and social exclusion indicators for 2022 the CSB includes population income received in 2021. Unlike the approach used by the CSB, Eurostat (Statistical Office of European Union) publishes monetary poverty and social exclusion indicators with a reference to the year the survey was conducted, nevertheless the population income data included in the indicator are complied on the previous calendar year.
1 At-risk-of-poverty rate is the share of persons with equivalised disposable income below 60 % of the national median equivalised disposable income.
At-risk-of-poverty threshold is 60 % of disposable income median recalculated per equivalent consumer.
Median is a statistical indicator characterising central value (midpoint of the breakdown) of the observations grouped from the lowest value to the highest.
2 Disposable (net) income is cash income from labour, employee income in kind received by using company car for private needs estimated in cash, income or losses received from self-employment, pensions and benefits received, regular material assistance from other households, profit from deposit interest, dividends, shares, income received by children aged under 16, income from property rental, tax return from the State Revenue Service due to overpaid income tax (for business activities, eligible costs – education, medical treatment, etc.).
Equivalent disposable (net) income is household disposable income calculated per equivalent consumer. It is obtained by dividing household income by equivalised household size, which is made using the modified OECD equivalence scale (1.0; 0.5; 0.3). This scale gives a weight of 1.0 to the first adult, 0.5 to any other household member aged 14 and over, and 0.3 to each child aged less than 14.
3 Social transfers are pensions and benefits paid by State or municipality, child maintenance payments, scholarships, social insurance benefits and compensations, including the ones paid by other countries.
Media requests:
Communication Section
E-mail: media@csp.gov.lv
Phone: +371 67366621, +371 27880666
More information on data:
Social Statistics Methodology Section
Darja Behtere
E-mail: Darja.Behtere@csp.gov.lv
Phone: +371 67366901
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