A study by the respected Francisco Manuel dos Santos Foundation, ‘Unequal Portugal,’ has concluded that the poorest families in Portugal are the ones that suffered most during the crisis years of 2009 to 2014.
During this period, Portuguese nationals lost an average of €116 per month, a decline that hit the poorest families with almost a third of the country’s workers earning less than €700 per month.
The report is "a picture of inequalities and of income and poverty in the country" and shows who has lost out over the crisis years. These statistics show without a doubt that the poor were the hardest hit.
The figures show that during the period, workers’ incomes fell by 12%, or €116 per month but that the poorest 10% lost 25% percent of their incomes, while the richest 10% only lost 13%.
The crisis affected mainly the younger generation with the "under 25s losing 29% of their income, way above the average loss."
The labour market was notable for low average wages, especially with regard to women, and suffered a deterioration in labour relations.
In 2009 one in five workers received less than €700 per month, in 2014 this had risen to almost one in three.
In the same period, the number of those categorised as ‘poor’ increased by 116,000 to 2.02 million, a quarter of these being children. Today, one in five Portuguese live off a monthly income of €422 or less.
Another conclusion is that the crisis has increased inequality in Portugal. In 2009, the poorest 5% received 15 times less than the richest 5%. In 2014 the poorest 5% received 19 times less than the richest.
The report concludes also that the Passos Coelho coalition government failed to respond adequately to the internal repercussions of the global economic crisis with the result that Portugal’s poor simply got poorer.
The Social Democrat's claim thay they helped the poor during this period 'by not reducing the minimum wage' is a cynical spin on the harsh reality for those still treated as an underclass.
