The impact of the coronavirus on businesses was evident before, and recent data from the National Statistics Institute shows that the economic strain from the pandemic now extends deeply into domestic markets. In the Community of Valencia, one in three residents faces the risk of poverty or social exclusion, up 2.4 percentage points since 2019, before the pandemic. This figure worsens when considering that only seven autonomous regions report higher enrollment rates, a trend many experts and unions attribute largely to persistently low wages.
The social risk or exclusion rate, established in 2010, measures relative poverty across Europe by extending beyond income to include material deprivation and social challenges. For Valencia, the latest published statistics indicate a rate of 30.6 percent in 2021, up from 29.7 percent the previous year and 28.2 percent in 2019, underscoring how the health crisis impacted households.
Valencia’s rate is three points above the national average, with only seven autonomous regions posting higher numbers. The most challenging figures appear in Ceuta at 43 percent, followed by Andalusia and Extremadura at 38.7 percent, the Canary Islands at 37.8 percent, Melilla at 35.2 percent, Murcia at 33.8 percent, and Castilla-La Mancha at 32.5 percent. In contrast, Navarra records 14.7 percent and the Basque Country 16 percent, the regions with the lowest rates.
Per capita income in the Valencia region stands at 11,237 euros, placing it twelfth among the autonomous regions. The Basque Country leads with 15,544 euros, while Extremadura sits at the bottom with 9,500 euros.
Another striking point is that 7.1 percent of Valencia residents report severe financial hardship, down from 11.5 percent in 2020 and 4.8 percent in 2019. The decline last year is linked to support measures from various administrations addressing the health crisis effects.
INE data also show that 7.8 percent of residents struggle with living costs, 13.6 percent face difficulties, and 26.4 percent encounter specific financial challenges. The share that purchases basic goods easily is 20.2 percent, while 3 percent report very easy access to these goods.
Additional daily-life indicators illustrate the breadth of the issue. About 35 percent of people cannot take a full annual vacation, 3.4 percent cannot eat meat, poultry, or fish every other day, and 15.5 percent cannot keep their homes at a comfortable temperature. Meanwhile, 32.3 percent cannot cover unexpected expenses, 11.4 percent struggle to pay essential household bills such as mortgage, rent, or utilities, 6 percent cannot own a car, and 6.6 percent cannot afford a personal computer.
Beyond the pandemic itself, experts explain the alarming trend by pointing to gaps in data analysis and persistent low wages in unskilled jobs. Economists note that while some groups show improvement, others stagnate or worsen, highlighting the uneven impact of the crisis on different segments of society.
Working poverty rises as millions struggle to make ends meet
Labor unions emphasize that elevated poverty and exclusion are widespread across the region but are most pronounced in areas such as Vega Baja, Marina Alta, and Marina Baixa, where tourism-linked employment and low wages prevail. Interior areas suffer from stagnating infrastructure, exacerbating the problem. Inflation that began to climb last year further compounds these challenges. Union representatives advocate for improving job quality and wages, with digitalization and innovation seen as essential components of any solution.
Low salaries continue to drive mobilization efforts scheduled for July. Protests are planned in front of regional business headquarters in Valencia, Castellón, and Alicante as unions push back against employer resistance to wage increases. Leaders emphasize protecting workers’ purchasing power and argue that the crisis demands economic remedies that reflect the real cost of living increases.