The spiral of poverty traps 2.5 million young people

BarcelonaAt the macroeconomic level, Spain is booming. In fact, a few months ago, the OECD identified the country as the fastest-growing advanced economy this year, with a projected growth rate of up to 2.6%. But while the big numbers are dazzling, for many children and young people the narrative of economic growth sounds distant, almost unreal. Their reality is quite different: one of precariousness, inaccessible housing, and vanishing opportunities. Since 2007, social exclusion among children and young people has steadily increased, and today it is consolidating into a genuine generational divide. This is the warning issued in the 9th Foessa Report, prepared by Cáritas and presented this Wednesday. The foundation points out that children are emerging as the hardest-hit group: minors represent a third of all severe exclusion, and their poverty rate has risen to 29%, the highest of all age groups and one of the highest in Europe. Young people are one of the other two most affected groups.

There are already 2.5 million young people in Spain trapped in structural precarity, characterized by high rates of temporary employment, involuntary part-time work, and low wages. Young people between the ages of 18 and 29 form a generation marked by two successive crises: the 2008 financial crisis and the COVID-19 pandemic. Eleven percent of this population lives in severe social exclusion, representing an 83% increase compared to 2007.

Furthermore, young people are entering their first jobs under worse conditions and with salaries between 15% and 30% lower than those of previous generations. "This is not a youth crisis; it is a societal crisis that affects us all, fractures social cohesion, threatens the welfare state, and undermines our democratic health," explained Raúl Flores, coordinator of the report.

The organization warns of an "alarming entrenchment" of inequality and emphasizes that "postal code and family background weigh more than ability and effort," because family origin determines social mobility more than merit. Children of parents with low levels of education are more than twice as likely to fall into poverty as their educated parents. Furthermore, the report warns that having a secondary school diploma is no longer enough to escape poverty: the real firewall now lies in post-compulsory education—upper secondary education and vocational training—which multiplies the risks for those who do not complete these studies.

Shrinking middle class

The report, compiled from a survey of 12,289 households across Spain by a team of 140 researchers, confirms that Spain has one of the highest rates of inequality in Europe and is undergoing an unprecedented process of social fragmentation. The middle class is shrinking, and many families are moving into lower socioeconomic strata. Social integration is eroding, and severe exclusion affects 4.3 million people. The main factors contributing to social exclusion in Spain are structural. These include the lack of decent housing and job insecurity, which affects almost half of the working population. Despite these difficulties, three out of four households experiencing severe exclusion are implementing inclusion strategies: they are looking for work, pursuing training, expanding their social networks, or adjusting their spending. In fact, 77% of these families are trying, compared to 68% in 2021.

"The myth of the passivity of people living in poverty and exclusion—the idea that they live off benefits without seeking solutions—is false. This reality demonstrates that it's not the people who are failing, it's the system," he urged.

The study also points to the ecological fallout from this social crisis. Higher-income households consume up to three times more energy and up to four times more in private transportation than low-income households, generating disproportionate emissions. The result is a paradox: there are "climate elites" with excessive consumption, and 1.8 million households in energy vulnerability who cannot maintain their homes at adequate temperatures.

Among its recommendations, the foundation proposes an integrated system of public policies that prevents inequality at its root and addresses the housing problem structurally. This involves expanding the stock of social housing and regulating the market to curb abusive price increases. It also calls for labor policies that transform employment, eradicate precarious work, and generate green and care jobs, especially those that dignify the latter.