22.5 % of population were at risk of poverty in 2022

Results from a survey conducted by the Central Statistical Bureau (CSB) in 2023 show that 419 thousand people or 22.5 % of the population of Latvia were at risk of poverty¹ in 2022 (the same figure as that recorded in 2021), meaning that the disposable income² thereof was below the at-risk-of-poverty threshold.

The largest proportion of people at risk of poverty (40.1 %) was observed in the age group 65+. The highest share of them (67.8 %) was formed by single people. Large share of people at risk of poverty was also recorded among unemployed people of full age (53.9 %) and households formed by one adult with dependent children (29.6 %).

As disposable income of the population grew last year, the at-risk-of-poverty threshold rose as well and reached EUR 563 monthly in one-person households (EUR 513 monthly in 2021). In households consisting of two adults with two children (aged 14 and under), the at-risk-of-poverty threshold reached EUR 1 182 monthly (EUR 1 077 monthly in 2021).

The largest share of population at risk of poverty was registered in Latgale (37.4 %) while the smallest in Riga and Pierīga (16.2 % in each). In Vidzeme those were 28.7 %, in Kurzeme 27.5 %, and in Zemgale 25.2 %.

Growing proportion of two adults with three or more children at risk of poverty

Over the year the share of households at risk of poverty increased among those formed by two adults with three or more dependent children³ – from 17.1 % in 2021 to 19.5 % in 2022. The same trend was observed among households consisting of one person aged 64 and under as their share grew from 28.9 % in 2021 to 29.8 % in 2022. However, the proportion of two adults with one child and of two adults without dependent children at risk of poverty reduced – from 15.1 % in 2021 to 10.2 % in 2022 and from 22.8 % in 2021 to 20.7 % in 2022, respectively. The proportions of other types of households at risk of poverty remained similar to those registered a year ago.

Social transfers sill significant in the population income

Stronger state support to the most vulnerable population groups (elderly, families with children, etc.) ensured that the proportion of people at risk of poverty is not growing. Higher state family allowance paid based on the number of children in a family, higher minimum pension amount not subjected to personal income tax, pension index adjustments, etc. ensured that the share of households at risk of poverty did not increase or even decrease slightly in the households formed by the elderly inhabitants and families with children. The households formed by two adults with three or more children was the only exception since the share thereof at risk of poverty went up slightly.

Social transfers⁴ (targeted state and municipal support, pensions formed by lifetime social tax contributions) still are important to fight the risk of poverty. In 2022 the income received in a form social transfers contributed to the total household disposable income and thus the share of people at risk of poverty fell by 18.1 percentage points. In case there were no social transfers (i.e., without state and municipal support, e.g., old-age pensions), 40.6 % of the population would be at risk of poverty. In 2021 social transfers allowed to lower the share of people at risk of poverty by 18.2 percentage points, in 2020 by 17.1 percentage points, and in 2019 by 16.8 percentage points.

More at-risk-of-poverty and social exclusion variables are currently available in the official statistics portal Poverty and inequality (EU-SILC) section and as of 16 January 2024 will be available in an informative leaflet People at Risk of Poverty and Social Exclusion in Latvia 2022 (in Latvian).

The poverty data were collected in the 2023 survey on European Union statistics on income and living conditions (EU-SILC) during the period from 31 January to 17 July. It covered 10.2 thousand respondents (people aged 16 and over) living in 5.8 thousand households. Information about the people at risk of poverty in 2023 will be collected in a similar survey in 2024, moreover respondents will be able to complete the survey questionnaire on line.

Methodological information

CSB monetary poverty and social exclusion variables for 2023 reflect the population income received in 2022. Unlike the approach used by the CSB, Eurostat (Statistical Office of European Union) publishes monetary poverty and social exclusion figures with a reference to the year the survey was conducted in, nevertheless the income data used refer to 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 the middle value of observations arranged in ascending or descending order.

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.).

Equivalised 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 Dependent child is a person aged 0–17 as well as a person aged 18–24 if economically inactive and living with at least one of the parents.

⁴ 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 27880666

More information on data:
Social Statistics Methodology Section
Darja Behtere
E-mail: Darja.Behtere@csp.gov.lv
Phone: +371 67366901