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Opinion | Poverty report shows Hong Kong is failing its most vulnerable
- According to latest figures, almost a quarter of the city’s population is living below the poverty line
- The fact poverty is increasing at the same time social welfare spending is ballooning shows a rethink of the government’s approach is urgently needed
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The latest Hong Kong poverty report has confirmed the continual worsening of the situation in the city. The poverty rate and total number have reached their highest level since 2009, with more than 1.65 million people – 23.6 per cent of the population – living below the poverty line, which is defined as less than 50 per cent of the median monthly household income.
Previous studies show that changes in poverty are related to several factors, including population growth, an ageing population and an increase in the number of smaller households.
If we look at data from earlier years, improvements in the poverty rate have usually been offset by the effects of an ageing population and reduced household size, the latter coming from a rising number of families affected by divorce. However, the Covid-19 pandemic and its effects on employment also contributed to increased poverty in 2020.
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Examining the long-term change in poverty levels, we can see a steady increase in the number of households living in poverty, rising from more than 541,000 in 2009 to over 703,000 in 2020. The number of people living under the poverty line rose from more than 1,384,000 to more than 1,653,000 in that time, with the poverty rate rising from 20.6 per cent to 23.6 per cent.
Since we use relative measures to define poverty, there are always people below the threshold. What hurts is that the income level marking the poverty line has actually decreased compared to 2019, meaning the overall median household income has fallen, despite the rising cost of living.
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Jobless struggle to make ends meet in Hong Kong as city battles coronavirus and recession
Jobless struggle to make ends meet in Hong Kong as city battles coronavirus and recession
The poverty line stands at HK$4,400 (US$560) a month for one-person households, rising to HK$9,500 for two people, HK$16,000 for three and HK$20,800 for four. One can only imagine the quality of life people in these low-income groups endure in Hong Kong with such a meagre income.
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