The economy shows a strong rebound after a period of hardship, with employment growth improving, yet the latest data reveal that poverty and social exclusion remain a concern in the Valencian Community. Financial pressures grow toward month-end and are intensified by inflation, impacting many households even as overall momentum returns.
These trends appear in the most recent Living Conditions Survey conducted annually by the INE. For instance, about one third of residents in the Valencian Community lack savings to cover unexpected costs, and around 3.4% of the population — roughly 65,000 people in Alicante Province and about 173,000 across the community — report an insufficient ability to buy meat or fish at least every two days.
Across Spain, the total percentage of the population at risk of poverty or exclusion, known as the Arope indicator, fell from 30.6% to 30.6% in 2022, with the Valencian Community at 27.5%. This rate is still below the 2019 level of 28.2% and remains higher than the national figure, where the risk sits around 26%. These numbers signal that recovery pockets persist even as income grows and some supports expand.
Improved earnings and broader economic recovery are reinforced by measures such as higher minimum wages and better pensions. As a result, the share of people whose income places them below 60% of the median household income dropped from 25.1% to 22.3%. It is important to note that the study reflects income from the year before the survey, 2021, when interpreting these changes.
Family units with low employment density — meaning members are unemployed or working only short periods — also fell, from 11.1% to 9.1%, following improvements in the labor market.
There remains, however, a notable gap in material and social deprivation. The share of people facing seven or more indicators of deprivation, out of a list of 13, declined modestly from 7.6% to 7.1%. That translates to an estimated 362,000 people across the autonomous community and about 136,000 in Alicante, assuming the same geographic ratio holds. The survey defines deprivation by multiple difficulties, such as delaying housing payments, difficulty affording certain foods, or lacking a car.
As observed by Carlos Gomez Gil, a sociologist and professor at the University of Alicante, the recovery measures and social protections reduced the severity of poverty but did not eliminate it. Significant pockets of extreme poverty persist and are expensive to reduce. He emphasizes the need for policy focused more intently on these groups to prevent persistent disparities.
Lack of material resources
Material indicators linked to inflation and rising prices show a worrying deterioration in some areas. About 37% of adults in the Valencian Community report they cannot afford even one week of vacation each year, up by two percentage points from the previous year.
Similarly, 34.6% of residents in Alicante, Valencia, and Castellón say they lack the means to handle unforeseen expenses, up 2.3 points year over year. Perhaps the most telling figure shows 18.4% of respondents statewide and 353,000 in Alicante cannot keep their homes at a comfortable temperature, with heating or air conditioning unaffordable for many households.
The digital divide intensified poverty during the pandemic
Another persistent concern is the ability to afford meat or fish regularly. About 3.4% of the population falls into this category, equating to roughly 173,000 people in the autonomous region and about 65,000 in Alicante who struggle to access proper nutrition. On the bright side, 2020 showed a partial recovery, when activity resumed after quarantine restrictions and many households maintained some of the gains achieved before the pandemic.
More households faced difficulty making ends meet toward the end of the month. The Living Conditions Survey indicates a slight uptick in those reporting livelihood challenges, rising to 48.8% of the population. Specifically, 27.8% said they could barely cover expenses, 12% described their situation as “forced,” and 8.4% admitted they often ran out of funds before month-end. In contrast, only 2.7% reported a comfortable end to the month. Regional variations persist, with Melilla reporting the highest risk and Navarra the lowest among communities, at 41% and 14.5% respectively.