From child poverty to income inequality: the indicators in a critical situation in Spain according to the European Commission

This report monitors the employment situation in the Union and provides an annual overview of social developments and employment in the Union and the recent political measures of the Member States.

The challenges facing Spain

In the section on Spain, the Commission highlights that our country “experiences challenges in terms of protection and social inclusion.” The data refers to 2023 and highlights the percentages of the general population and among children at risk of exclusion, which already represent up to 26.5% and 35.5%, respectively. “This can be attributed in part to problems of suitability and coverage of the social protection system systemregional disparities in access to public services and persistent poverty at work,” the text highlights.

On the other hand, it also refers to the work situation in Spain. Although the Commission recognizes that “The labor market has improved significantly” Challenges are also identified such as the unemployment rate since “levels remain high”, as well as the rate of young people who neither study nor work. Another issue to address are the challenges related to “premature abandonment of education and training.”

It is concluded that in our country there are six critical indicators or to monitor. They are the following:

Early leaving education and training

This is data extracted in May 2024. In Europe, during the year 2023, an average of 9.5% of young people between 18 and 24 years old of the EU prematurely abandoned education and training. However, Spain is one of the countries that registers highest rates (13.7%) only after Romania (16.6%). The positive part of the statistic is that, at the same time as high dropout rates are recorded, Spain is also one of the countries where these terms have decreased the most (-9.9%). This is one of the critical indicators.

Risk of poverty or social exclusion rate

The 2023 data – extracted by Eurostat in the month of June – show that 21% of the population was at risk of poverty or social exclusion. In Europe, 21% of the population lives under this risk. In this section Spain is once again one of the countries that has registered the highest percentage (27%) along with Romania (32%) and Bulgaria (30%).

Rate of risk of poverty or social exclusion in children

With data newly extracted in June by Eurostat, in 2023, 24.8% of children under 18 years of age in the EU were at risk of poverty or social exclusion. In the case of Spain the percentage rises to 34.5%behind Romania where it reaches 39%.

Impact of social transfers

It is the last of the sections marked by the commission in a “critical” situation. This is the impact of social transfers (excluding pensions) on poverty reduction by sex. In this case, the latest data available is from December 2024. While the average of the 27 is 34.68% in Spain, that percentage drops to 22.9%.

Young people who neither work nor study

In 2023, with data from May 2024, 11.2% of young people aged 15 to 29 in the EU were not working, studying or receiving training. In Spain this rate is slightly above the average, around 12%which is why the Commission insists that it is a section to monitor.

Income quintile participation ratio

This time refers to the relationship between the total income received by the 20% of the population with the highest income and that received by the 20% of the population with the lowest income. In December 2023 in Spain was 5.5 compared to 4.75 in the euro zone so it is another aspect to monitor.

Regarding the indicators in which Spain stands out, there is the percentage of people with basic digital skills or above basic digital skills and the employment gap due to disability.

As for the rest of the indicators, our country is average or improving little by little.