In Ecuador, 1.4 million people escaped income poverty in nine years

Unemployment rates remained stabled in 2016. Photo: Andes

Quito, Jan 17 (Andes).- Ecuador reported an income poverty rate of 22.9% in 2016 in comparison to the 36.7% in 2007 which means that nearly 1.4 million people escaped poverty, according to the National Institute of Statistics and Census (INEC) in its recent National Employment and Unemployment Survey.

Rural poverty contributed the most to this aspect with a reduction of 23.2 points going from 61.3% in December 2007 to 38.2% in the last month of 2016. In 2015, Ecuador reported a rural poverty rate of 39.3%.

In the case of extreme poverty, nearly 900 thousand people escaped such condition going from 16.5% in 2007 to 8.7% in 2016.

Poverty line until December 2016 was 84.68 dollars a month per capita in Ecuador. This means that those whose earnings are lower are considered poor.

GINI coefficient, which measures income inequality within the population, decreased 8.5 points in the same period. In 2007, it was 0.551 points while it stood at 0.466 in 2006. Ranging from 0 to 1, GINI shows greater equality when closer to 0.

In 2015, such indicator stood at 0.476, this means there was no great variation during 2016, according to INEC.

Multidimensional Poverty Index (MPI) was reduced by 16.4 points since 2009 

Ecuador reported a multidimensional poverty rate of 35.1% until December 2016 compared to the 35% in 2015, a stable average despite the difficult situation the country faced as a result of external economic factors and internal tragedies such as the magnitude 7.8 earthquake that struck the country last April.

In comparison to 2009, year in which this indicator began to be measured, multidimensional poverty was reduced by 16.4 percentage points.

Concerning unsatisfied basic needs poverty, it reached 32.1% last December in comparison to 32.9% in 2015 which shows stability too.

Unemployment remains the same during 2016

“In December 2016, the country’s unemployment was 5.2% in comparison to 4.8% of the same month on 2015 which does not statistically represent a significant difference. Therefore, unemployment rates remain the same in these two periods and in the last two quarters of last year,” INEC informed in its report.

According to the report, the overall participation rate increased from 65.8% in December 2015 to 67.3% in December 2016. In such period, the Economically Active Population increased nearly in 375 thousand people while the working age population increased in about 297 thousand people. This means, people who were previously inactive started working.

National underemployment stood at 19.9% in comparison to 14% in December 2015.