The first Social Report of Catalonia, presented this Tuesday in Barcelona by president Salvador Illa, reveals that 95% of Catalans' net income is allocated to cover basic needs. The 257-page document offers a detailed X-ray of the social and economic situation throughout the territory, with a special impact in areas such as southern Catalonia, where families must contribute on average more than 100% of their income to cover essential expenses.
The cost of living and housing skyrocket in the last decade
A Catalan family currently spends 37,409 euros per year, almost 8,000 more than in 2015. The price of housing has increased by 33% in the last ten years and that of food and supplies by 32%. Rent has become 129.4% more expensive since the beginning of the century and four out of ten tenants dedicate more than 40% of their income to this concept. To buy a second-hand home, a family needs to save for two decades.
The pressure on the family budget is especially intense in municipalities in the south of Catalonia, where the cost of living exceeds average income. The report also indicates that the postal code influences life expectancy, with differences of 2.4 years between municipalities and more than 11 years between neighborhoods depending on income.
Inequality, poverty and aging mark the social landscape
24.8% of the Catalan population, almost two million people, is below the poverty threshold. 36.5% of children in Catalonia are in a situation of poverty, according to the Idescat Survey of Living Conditions. 10% of workers are at risk of poverty, despite the unemployment rate standing at 8.9%, the lowest since 2008.
The report highlights that salaries have grown by 28.2% between 2008 and 2023, but purchasing power has fallen by 3.3% and by as much as 5.6% for the lowest incomes. The richest 1% of Catalans accumulate 24.5% of the territory's wealth. Furthermore, 19.5% of Catalans are 65 years or older and 320,000 live alone. The fertility rate is at a historic low of 1.08 children per woman.
Social services and access to public aid
Catalan Social Services have contributed to reducing inequality in Catalonia by 31.9%. However, only 15.9% of households at risk of poverty receive the guaranteed citizenship income, and 67% of those who could opt for the minimum vital income do not apply for it. The waiting time to review or certify a degree of dependency is between 14 and 15 months.
Since the beginning of the century, 1.4 million immigrants have arrived in Catalonia, which has meant a relevant demographic change in neighborhoods and municipalities of Barcelona, Girona, and Tarragona.
President Illa defends the new financing model
"Catalonia combines a relevant economic and labor dynamism with increasing pressure on living conditions" - Salvador Illa, president of the Generalitat
Salvador Illa vindicated the financing agreement presented at the beginning of the year, which would mean 4.6 billion euros more for Catalonia. The president assured that this model corrects an imbalance and does not imply any privilege for the territory. Furthermore, he stressed the importance of the regional financing system as a pillar of the welfare state.
"I am happy that the proposal has come out of Catalonia" - Salvador Illa
The social report places housing, poverty, and inequality as the main challenges for Catalan society in the next decade.