The economy shows strong signs of recovery after a difficult period, and employment growth has improved. Yet, poverty risk and social exclusion remain a concern in the Valencian Community, with real challenges still faced by many households due to inflation and monthly financial pressure.
This situation is reflected in the latest Living Conditions Survey conducted annually by the INE. For example, a sizable portion of residents in the autonomous community lack savings to cover unforeseen expenses, and a portion of the population—roughly 65,000 people in Alicante province and about 173,000 across the Community—struggles to afford regular meals, such as meat or fish every other day.
Across Spain, the total share of people at risk of poverty or social exclusion—the so‑called Arope indicator—shows some changes. In 2022, the Valencian Community reported a figure around 27.5%, still above national averages but lower than the highest recent levels. The overall trend suggests improvement relative to the worst points of the crisis, yet pockets of vulnerability persist for certain groups (Cited: INE Living Conditions Survey).
The rise in average income and continued economic recovery—supported by measures like higher minimum wages and strengthened pensions—contribute to a reduced income‑based poverty risk, which fell from 25.1% to 22.3%. It is important to note that the study uses the income level from the year prior to the survey, in this case 2021, to estimate this metric (Cited: INE Living Conditions Survey).
Families facing low employment density—where many members are unemployed or work only short periods—also show a decline, dropping from 11.1% to 9.1% as the labor market improves.
It is notable, however, that the share of the population experiencing serious material and social deprivation has fallen only modestly, from 7.6% to 7.1%. That translates to roughly 362,000 people in the autonomous region and about 136,000 in Alicante province, assuming the same ratio persists. The survey defines deprivation as needing to meet at least seven of a 13‑indicator list, which includes late housing payments, unaffordable food, or lack of a car (Cited: University of Alicante sociologist Carlos Gomez Gil).
Carlos Gomez Gil, a sociologist and professor at the Department of Applied Economic Analysis of the University of Alicante, notes that the recovery efforts and the social shield implemented during the pandemic helped overall conditions but did not eliminate pockets of extreme poverty. He stresses that social policies must increase focus on these groups, as similar patterns were observed after past crises (Cited: University of Alicante).
Lack of material assets
In detail, certain material indicators tied to inflation and rising prices show deterioration. About 37% of autonomous residents say they cannot afford even a one‑week vacation each year, a marginal rise from the previous year. Meanwhile, 34.6% of people across Alicante, Valencia, and Castellón report insufficient resources to cover unforeseen expenses, a 2.3 point increase from the prior period. Perhaps most striking, 18.4% of respondents—roughly 939,000 people in the autonomous community and 353,000 in Alicante—cannot keep their homes at a comfortable temperature because heating or cooling is unaffordable (Cited: INE Living Conditions Survey).
The digital divide and poverty during the pandemic
Another troubling finding is that some households still cannot regularly eat meat or fish, representing about 3.4% of the population. That translates to roughly 173,000 people in the autonomous community and around 65,000 in Alicante who face difficulties with adequate nutrition. The data also show an improvement since the worst months of the lockdown, when enrollment numbers doubled relative to pre‑pandemic levels, but the initial spike is still felt in the post‑pandemic period (Cited: INE Living Conditions Survey).
Persistent struggles reaching the end of the month remain notable. The Living Conditions Survey records that 48.8% of the population report some difficulty meeting expenses, up one percentage point from the previous year. Specifically, 27.8% say they can barely cover expenses, 12% describe themselves as forced to make ends meet, and 8.4% admit they end the month with difficulty. In contrast, only 2.7% report finishing the month with more than enough. Regional comparisons place Melilla at the highest risk of exclusion, at about 41%, with Navarra recording the lowest at around 14.5% (Cited: INE Living Conditions Survey).