Millions of people are poor and deprived!

Millions of people are poor and deprived!
Date: 7.5.2022 18:00

33,4 percent of households cannot afford unexpected expenses, 20,5 percent cannot meet the heating need of the house, and 62,9 percent cannot afford to replace old furniture economically.

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Those with debts or payments other than housing purchases and housing costs increased to 63,7 percent. 
 
Turkish Statistical Institute (TURKSTAT) announced the results of the Income and Living Conditions Survey for 2021. According to the “equivalent household disposable income” obtained by dividing the disposable household disposable income by the equivalent household size calculated taking into account the household size and composition, the share of the 20 percent group with the highest income from the total income in 2021 is compared to the previous year, it decreased by 0,8 points to 46,7 percent. The share of the 20 percent group with the lowest income increased by 0,2 points to 6,1 percent. The Gini coefficient, which is one of the income distribution inequality criteria and expresses the equality in income distribution as it approaches zero and the deterioration in income distribution as it approaches 1, was estimated as 0,401 in 2021 with a decrease of 0,009 points compared to the previous year. 
 

HIGHEST SHARE OF REVENUES IS SALARY AND WAGES 

 
Average annual household disposable income in Turkey, last year increased by 10,6 percent compared to the previous year and rose to 76,733 Turkish Liras (TL). On the other hand, the annual average equivalent household disposable income in Turkey increased by 11,9 percent compared to the previous year, from 33,428 TL to 37,400 TL. Salary and wage income, which remained the same compared to the previous year, had the highest share in total equivalent household disposable income with 47,1 percent. While social transfer income, which increased by 2,1 points compared to the previous year, took the second place with 23,9 percent, the third place was taken by the income of entrepreneurs with 17,5 percent, which decreased by 0,2 points compared to 2020. The share of agricultural income in entrepreneurial income increased by 2,5 points compared to 2020 and became 20,9 percent, while the share of pensioners and widows-orphans' pensions in social transfers decreased by 1,7 points and became 90 percent. 
 

THE LOWEST AVERAGE INCOME IS IN AGRICULTURE 

 
Annual average main job incomes are 68,229 TL for higher education graduates, 47,326 TL for high school and equivalent school graduates, 35,344 TL for those with less than high school education, respectively calculated as 25,911 TL for those who did not complete a school, and 19,835 TL for illiterate individuals. When the main business incomes are analyzed by sector, the highest average annual income was seen in the service sector with 51,173 TL, and the lowest average annual income was seen in the agriculture sector with 32,635 TL. Compared to the previous year, the highest increase in annual average core business income was observed in the agriculture sector with 29,2 percent, followed by the service sector with 11,2 percent. On the other hand, an increase of 6,1 percent in the industrial sector and 4,7 percent in the construction sector was recorded. 
 

“CONTINUOUS POVERTY” RATE INCREASED TO 13,8 PERCENT 

 
The continuous poverty rate, calculated using four-year panel data, includes individuals who have been poor at 60 percent of equivalent household disposable median income in the last year, as well as for at least two of the previous three years. Accordingly, according to the results of the 2021 survey, the permanent poverty rate increased by 0,1 percentage points compared to the previous year and became 13,8 percent. While the rate of those own residence calculated as 57,5 percent in 2021 with a decrease of 0,3 points, the rate of those living in rent was 26,8 percent, the rate of those living in lodgings was 1,2 percent, and the rate of those not living in their own house and not paying rent was 14,6 percent.
 

64 PERCENT OF POPULATION HAS DEBTS 

 
While 34,3 percent of the non-institutional population has problems such as heating problems due to insulation, 33,9 percent of them have problems such as leaky roof, damp walls, rotten window frames, 23,4 percent of them have air pollution caused by traffic or industry, environmental pollution or encountered other environmental problems. Compared to the previous year, the rate of those with debt or installment payments other than housing purchases and housing expenses increased by 5,4 points and became 63,7 percent. While these payments did not impose a burden on 6,6 percent of the population, they brought a heavy burden on 23 percent. People stated that they could not meet their needs economically, 60,8 percent of the households spend a week's vacation away from home, 38,3 percent the cost of a meal containing meat, chicken or fish every other day, 33,4 percent unexpected expenses, 20,5 percent heating the house and 62.9% of them could not afford the renewal of old furniture.
 

SERIOUS MATERIAL DEFICIENCY RATE 27,2 PERCENT 

 
Material deprivation, which refers to the state of being in financial distress; It reflects the perceptions of households about the situation being able to make unexpected expenses economically with the ownership of a washing machine, color television, telephone and automobile, being able to pay for a week's vacation away from home, paying rent, housing loans and interest-bearing debts, eating meat, chicken, fish every other day, and meeting the heating need of the house. The rate of severe material deprivation, which is defined as the rate of those who cannot meet at least four of the nine items stated, was 27,4 percent in 2020, decreasing by 0,2 percentage points in the 2021 survey results to 27,2 percent. 
The income of the “richest” was 7,65 times the income of the “poorest”. The “permanent poverty rate” increased by 0,1 percentage points compared to the previous year and became 13,8 percent. 
 

64 PERCENT OF THE POPULATION HAS DEBT

 
34,3 percent of the non-institutional population experienced problems such as heating problems due to insulation, and 33,9 percent had problems such as leaky roof, damp walls, rotten window frames. 
 
Compared to the previous year, the rate of those with debt or installment payments other than housing purchases and housing expenses increased by 5,4 points and became 63,7 percent. 
 
62,9 percent of households declared that they could not meet the need for the renewal of old furniture economically, 60,8 percent of the households spend a week's vacation away from home, 38,3 percent the cost of a meal containing meat, chicken or fish every other day, 33,4 percent unexpected expenses, 20,5 percent heating the house. The rate of "serious financial deprivation" was 27,2 percent in 2021.
 

YEREL HABERLER

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