site.btaOn the Eve of May Day, Podkrepa Confederation of Labour Warns that Impoverishment Continues

On the eve of May Day, the Podkrepa Confederation of Labour warns that impoverishment is continuing. An analysis published on Tuesday says chronic poverty is becoming a fact for one in three households. The main conclusion is that the level of wages, pensions and unemployment are the factors that drive poverty, pose a risk of social exclusion and a risk to the nation's health.

Podkrepa added that the minimum wage is falls short of the subsistence minimum. One in three households live below the poverty line and two in three live below the subsistence minimum. The grey economy, denial of overtime pay, and token extra pay for night and hazardous work also contribute to low earnings. Podkrepa cited data of the National Statistical Institute for 2023 showing that the impoverishment trend has not been reversed.

In 2023, the share of the poor among those employed in the 18-64 age group increased to 11.7% by 1.7 percentage points (pp) from 2022. Part-time workers are approximately three times more likely to fall into poverty than full-time workers. At the same time, the risk of poverty among working women is 2.5pp lower than that for working men. 

Estimates of poverty by household type show that the share of the poor is highest in households of two adults with three or more children (55.2%), and of a single parent with children (42.8%). In single-person households, the risk of poverty for women is 2pp higher than for men. The risk of poverty for a person aged over 65 living in a single-person household is 1.8pp higher than for a person under 65.

Children are the worst affected in this hopeless situation, Podkrepa says. One in three children lives in deprivation. The risk of social exclusion is accompanied by putting the children's health at risk, limiting their access to education, stumping their development and creating a sense of inferiority.

In 2023, the share of children living in deprivation is 30.9%, and for 1.6% of them no need can be met for lack of money. Nearly one in four children (25.9%) cannot afford a holiday away from home for at least one week a year, including an organized break from school. Outdoor play equipment is unaffordable for 22.8%, while regular activities such as swimming, playing a musical instrument or participating in youth organizations are unaffordable for nearly 20% of children. In 2023, 47.8% of children living in deprivation were also at risk of poverty. 

The poverty line set by the government at BGN 526 for 2024 is far from the real poverty line, Podkrepa said.