2022
The significantly elevated proportion of individuals at risk of poverty and social exclusion provides evidence that the social situation in Germany worsened during the Corona pandemic and reversed progress that had been recorded in this area as late as 2019. Since the war in Ukraine and its economic consequences will cause significantly worse economic development in 2022 and presumably also in 2023 than was assumed in 2021, it is to be feared that the social situation will worsen furthermore on this later.
2021
Unfortunately, as of early September 2021, data on the number of people at risk of poverty or social exclusion in 2020 were not yet available for Germany. This also applies to all other indicators listed.
In 2019, the percentage of people at risk of poverty or social exclusion had fallen significantly compared to the previous year, from 18.7 percent (resp. 15.25 million people) to 17.4 percent (resp.14.25 million people). Compared to 2008, 2.1 million fewer people were at risk of poverty or social exclusion. The share of people at risk of monetary poverty also fell significantly between 2018 and 2019, from 16 percent (resp. 13.05 million people) to 14.8 percent (resp. 12.12 million people). Compared to 2008 (12.39 million people), the decrease is much less pronounced at 270,000 persons. In 2019, the share of persons suffering from significant material deprivation was also down from the previous year. It fell from 3.1 percent (resp. 2.54 million persons) to 2.6 percent (resp. 2.13 million persons). Compared with 2008, 2.3 million fewer persons suffered from significant material deprivation. Compared with the previous year, the share of persons living in households with very low labour intensity decreased from 8.1 percent (or 4.75 million persons) in 2018 to 7.6 percent (or 4.45 million persons) in 2019. Compared with 2008, 2.6 million fewer persons lived in households with very low labour intensity.
Poverty Watch Main Findings
Most Affected Groups
Low-income earners
Elderly people
People with disabilities
People affected by the digital divide
Non-EU migrants
Young people
Single-parent families
Female workers
Renters
Main Priorities
- Even though the introduction of the minimum wage in 2015 has led to positive effects throughout the low-wage sector, it is still far too low. The minimum wage should be poverty-preventing at least for full-time employees and should be raised accordingly to 60 percent of the median wage.
- Even though the share of employees in the low-wage sector has fallen significantly recently, nearly one-fifth of the workforce – or 7.2 million people – still work for wages lower than 66 percent of the
median wage. Presumably, a significant increase in the minimum wage, if compliance is adequately monitored, would help further shrink the low-wage sector. - There is still a lack of social protection in the basic security system. In addition to receiving a cash allowance, beneficiaries receive reimbursement of their housing costs – if appropriate. If both components are added, the amount of basic security is below the poverty threshold for most household constellations.
- During the Corona pandemic, it became particularly clear that it is a mistake not to include the self-employed in the social security system. Including the self-employed in the social security system would therefore not only protect pseudo self-employed workers from exploitation by others but would also protect other self employed persons from exploitation by themselves.
- The Corona pandemic has additionally exposed quite harshly that, despite various legal measures in recent years, contracts for work and services are still being used under the pretext of the European Posting of Workers Directive to employ citizens of poorer EU countries in Germany at extremely low wages and often without social protection, and to house them in inhumane conditions. Only deterrent sanctions and a high level of control intensity will be successful where rules have so far not been sufficient to prevent the exploitation of mobile EU workers, the extent of which has so far been unparalleled in the German labour market.
- As part of the Corona relief effort, the federal government determined that rent arrears from April to June 2020 would not entitle the landlord to terminate the rent agreement for a period of 24 months if the arrears were due to the effects of the Corona pandemic. The regulations expired July 1, 2020 and were not renewed. An unbureaucratic solution should be found here for tenants affected by poverty, especially since the Corona pandemic has had a negative impact on the employment opportunities of vulnerable groups – e.g. young adults and the long-term unemployed – even into spring 2021. In cases of hardship, the state should either take over rent payments directly or at least enable rent payments by granting interest-free loans.
2020
In 2018, 18.7 percent of the population is still affected by the risk of poverty or social exclusion, 1.3 percentage points less than in 2008. The slightly positive development is based on the indicators “Severely materially deprived people” and “People living in households with very low work intensity”.
Poverty Watch Main Findings
Most affected groups
Severely materially deprived people
Solo self-employed people
Main priorities
- Faster support for people in poverty
- Increase in Minimum Wage and significant extension of controls
- Implementation of better options of combining work and family life
- Introduction of a uniform benefit payment for children
- Germany has to consider further factors (at-risk-of-poverty rate, material deprivation etc.) than only the number of long-term unemployed people in the NRP
- Human rights have to be preserved
- Social and human interests should be more prioritized than economic interests
Contact details
Nationale Armutskonferenz
Tel: +49 30 65211-1062
E-mail: anna-katharina-dietrich (@) diakonie.de
Website: www.nationale-armutskonferenz.de
Facebook: https://www.facebook.com/nationalearmutskonferenz
Twitter: https://twitter.com/NAK_EAPN
