Why this story matters:
Czechia has excellent macroeconomic results. However, due to its very low wages, Czechia is struggling with what is called "working poverty". Working poverty is when an individual's income cannot cover basic needs. Several hundred thousand Czechs are coping this with distressing situation.
In recent years, the most vulnerable group have been young people without an education or proper jobs, especially women.
Women are at greater risk than men due to the gender pay gap and women are more likely to be rearing children alone; over 18% of men over the age 25 are at risk compared to 27% of women. Decisive factors contributing to this situation are an unstable family social and financial situation, and insufficient education.
Details from the story:
- Czechia has the lowest unemployment rate in the EU, under 4% and the lowest share of people threatened with poverty out of all 27 EU countries. Only 9.7% of its inhabitants live at or below the poverty level.
- In the EU and the euro zone the statistic is 17%. Romania has the greatest number, with poverty at 25%.
- According to a recent Median agency survey, some 300,000 young Czechs between 18 and 30 are at risk of falling below the poverty line.
- Those who were poor in childhood are more likely to stay poor all their lives.
- Affordable housing for those in need is more of the factors that can help break this cycle of poverty.