Housing costs and digital skills reshape poverty in Europe

Housing costs and a lack of digital skills are increasingly shaping people’s living standards, a study by Slovak researchers has found, ERR reported. The findings suggest economic growth alone is not enough to ensure a good quality of life.

The researchers analysed Eurostat data from 2015 to 2023 to assess social and economic conditions across European Union countries. They found that countries’ ability to support their populations is not determined solely by geography or overall economic growth.

Finland and Czechia formed a group of better-performing countries in recent years, with low poverty rates and strong digital skills. Romania, Bulgaria, Greece and Latvia were among the most vulnerable, with lower economic well-being and weaker basic digital skills.

Differences were also evident among wealthier countries. In Luxembourg, which has a very high gross domestic product per capita, the share of people living in monetary poverty increased during the period studied. The country also faces in-work poverty.

Housing costs in Luxembourg are about 86 percent above the EU average, illustrating that strong economic performance does not necessarily shield everyone from financial hardship or housing difficulties.

The researchers said poverty has become increasingly multidimensional. Alongside income, access to affordable housing and digital skills play a growing role in social vulnerability. People who lack these skills face greater uncertainty in the labour market and may be less able to cope with economic setbacks.

The researchers said long-term planning in European countries should address income, access to housing and education. The findings were published in the journal PLOS One.