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Cyprus is a small homogenous community with traditionally low levels of literacy and unemployment. Poverty is not considered a major problem by the Cyprus government, and lack of reliable historical statistics prevents historical studies of persistent poverty. Due to strong kinship bonds among extended families, poverty in Cyprus primarily affects those outside kinship networks, such as immigrants, divorcees and singles from small families. One study found a strong correlation between increased poverty and small family size. Poverty is also more likely to affect the elderly than the young.

Statistical indicators and historical trend

A report from the late 1990s (based on the (Family Expenditure Survey of 1996-97)) found that the Gini coefficient for Cypris was about 0..36, and that the most vulnerable groups included chronically ill people, retired people, poorly educated people, or housewives (widows).

Poverty and social exclusion in Cyprus have not changed significantly following Cyprus entry to the European Union in 2004. According to Eurostat, people at risk of poverty or social exclusion in Cyprus accounted for approximately 23 to 27%, roughly aligned with the EU average of about 23-26% in the measured period (2004-2012). In 2010 16% of the population were part of households with income below €10.189 per adult capita, corresponding to 60% of the median income per adult capita. People living in severe material deprivation compromised about 10% of the population.

A recent study by Koutsampelas and Polycarpou (2013) noted that "Poverty , according to all indices, falls between 2009 and 2012. However, it increases considerably in 2013 (13.1% - 32.9%) and thereafter it stabilizes at rather high levels." This reflects the 2012–13 Cypriot financial crisis. Following this crisis, predictions have emerged suggesting that poverty in Cyprus will significantly worsen, however, as of 2014 no conclusive studies have yet emerged. Number of people living in severe material deprivation rose to 15%, though the at-risk rate actually dropped from 15.9% in 2008 to 14.7% in 2012.

Unemployment in Cyprus rose significantly from 3.7% in 2008 to 15.9% in 2013, and youth unemployment reached a record 32% that year. Long term unemployment rate rose more than sevenfold from 0.5% in 2008 to 3.6% in 2012.

Reasons for poverty

One of the cited reasons for poverty in Cyprus include lack of education, however educational attainment in Cyrus have been raising to surpass the EU average, and therefore the educational attainment issue should become less relevant. Another factor, affecting the elderly, was inadequate government provisions for pensions of private sector retirees. On the other hand, child poverty in Cyprus has been relatively low.

Government attitude

A 2003 study noted that poverty is not considered a major problem by the Cyprus government. While the Cyrpus government have taken steps to alleviate poverty, lack of reliable statistics have been cited as a factor making assessment of those policies difficult (as of 2003). As of 2013 lack of statistics prevented detailed discussion of poverty in the UN's Human Development Report for Cyprus. There were also concerns that the state's policies are not sufficient to reach extended families, communities, particularly those heavily dependent around failing small family businesses, and immigrants.

In 2013 Cyprus government has taken steps to reduce disincentives to work.

References

1. ^ Social Protection in the Candidate Countries: Country Studies Cyprus, Malta, Turkey. IOS Press. 2003. p. 53. ISBN 978-3-89838-045-4.
2. ^ Social Protection in the Candidate Countries: Country Studies Cyprus, Malta, Turkey. IOS Press. 2003. p. 54. ISBN 978-3-89838-045-4.
3. Social Protection in the Candidate Countries: Country Studies Cyprus, Malta, Turkey. IOS Press. 2003. p. 8. ISBN 978-3-89838-045-4.
4. ^ "Cyprus". Socialwatch.eu. Retrieved 2014-07-25.
5. "Eurostat - Data Explorer". Appsso.eurostat.ec.europa.eu. 2014-07-14. Retrieved 2014-07-25.
6. ^ National Social Report 2012, p.3-4
7. ^ Caritas Europa Shadow Report 2013 Country Summary for Cyprus
8. Christos Koutsampelas, Alexandros Polycarpou, The Distributional Consequences of the Cypriot Crisis, Cyprus Economic Policy Review, Vol. 7 , No. 1 , pp. 47 - 61 (2013)
9. Social Protection in the Candidate Countries: Country Studies Cyprus, Malta, Turkey. IOS Press. 2003. pp. 64–66. ISBN 978-3-89838-045-4.
10. Christos Koutsampelas, Aspects of Elderly Poverty in Cyprus, Cyprus Economic Policy Review, Vol. 6 , No. 1 , pp. 69 - 89 (2012 )
11. Panos Pashardes, Why Child Poverty in Cyprus is so Low, Economics Research Centre and Department of Economics, University of Cyprus
12. ^ Social Protection in the Candidate Countries: Country Studies Cyprus, Malta, Turkey. IOS Press. 2003. p. 79. ISBN 978-3-89838-045-4.
13. Human Development Report 2013: Cyprus

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