Analytics, EU – Baltic States, Financial Services, Lithuania, Society

In urban areas, the proportion of persons with disposable income below the at-risk-of-poverty threshold stood at 15.1% (in five major cities – 11.7, in other towns – 20.3%), in rural areas – at 31.7%. Compared to 2012, the at-risk-of-poverty rate in urban areas increased by 1.4 percentage points (in five major cities – by 0.4 percentage point, in other towns – 3 percentage points), in rural areas – by 3.2 percentage points.

In 2013, the at-risk-of-poverty threshold was LTL 811 (EUR 235) per month for a single person and LTL 1,703 (EUR 493) per month for a family consisting of two adults and two children under 14. Compared to 2012, due to an increase in the disposable income of the population, the at-risk-of-poverty threshold grew by 8.3%.

Those at risk of poverty were usually children under 18. In 2013, the at-risk-of-poverty rate for the children stood at 26.9% and, compared to 2012, grew by 6.1%age points. The increase in the at-risk-of-poverty rate of children was largely influenced by the changes in procedure of payment of maternity (paternity) allowances in 2011. Although in the income survey period (2012) a decrease in unemployment and an increase in wages and salaries was observed, the at-risk-of-poverty rate for persons aged 18-64, against the previous year, grew by 1.1%age points and stood at 19% in 2013. Minimum wage and salary, with no other sources of income, did not protect employed persons from risk of poverty.

In 2013, the at-risk-of-poverty rate for persons aged 65 and older stood at 19.4% and, compared to 2012, grew by 0.7 percentage points. The average old-age pension paid in totalled LTL 815.6 (EUR 236.2). It means that old-age pensioners living alone and receiving by at least LTL 5 (EUR 1.45) lower than the average old-age pension found themselves below the at-risk-of-poverty threshold.

In 2013, the at-risk-of-poverty rate in households with children stood at 21.8% and, against 2012, grew by 3.4 percentage points. Over a year, the at-risk-of-poverty rate in households without children remained almost unchanged and stood at 19% in 2013 (18.8% in 2012). As regards household composition, persons at risk of poverty were usually those living in the households consisting of one adult with dependent children (at-risk-of-poverty rate – 42.8%) and single persons (33.7%).

Among employed persons – 9.1%, among the unemployed – 61%, among old-age pensioners – 22.7% were living below the at-risk-of-poverty threshold. Compared to 2012, the at-risk-of-poverty rate for employed persons grew by 1.5 percentage points, that for the unemployed – 6.6 percentage points, that for old-age pensioners – 1.9 percentage points.

The difference between the at-risk-of-poverty rate before and after social transfers shows the impact of social transfers on the reduction in the risk of poverty. After the deduction of social transfers (except for old-age and survivor's pensions) from disposable income, the at-risk-of-poverty rate would increase to 30.3% in 2013. Against the previous year, the impact of social transfers on the at-risk-of-poverty rate remained almost unchanged. Social transfers had the greatest impact on the at-risk-of-poverty rate in households with children: in 2012, after the deduction of social transfers, the at-risk-of-poverty rate for children under 18 would increase from 26.9 to 40.7%.

In 2013, the at-risk-of-poverty gap stood at 24.8%, suggesting that the disposable income of persons living below the at-risk-of-poverty threshold was, on average, by 24.8% lower than the at-risk-of-poverty threshold. Against 2012, the at-risk-of-poverty gap increased by 2.2%age points. In urban areas, the at-risk-of-poverty gap stood at 20.5, in the rural ones – at 26.3% (in 2012, at 20.3 and 23.6% respectively).

In 2013, according to Eurostat's data, 18.6% of the Estonian population and 19.4% of Latvian population were at risk of poverty. Compared to 2012, the at-risk-of-poverty rate in Estonia increased by 1.1, that in Latvia – 0.2 percentage points.

Data on the income and living conditions of the population were collected in March-June 2013. The 5142 households interviewed were randomly sampled from the Residents' Register. In addition, income data from the State Social Insurance Fund Board, the State Tax Inspectorate, and the Ministry of Social Security and Labour were used. In the European Union, the Survey on Income and Living Conditions (EU-SILC) is conducted annually according to the methodology of the Statistical Office of the European Union (Eurostat).

At-risk-of-poverty indicators are calculated based on the data on income of the previous year (data on income received in 2012 were used for calculation of the at-risk-of-poverty indicators 2013).