Spain ranks 5th in EU for severe material and social deprivation

A report by Funcas, based on Eurostat data, reveals that severe material and social deprivation in Spain has worsened over the last decade despite significant economic growth and job creation. Spain has dropped from 15th to 5th place among EU member states regarding the proportion of the population facing these hardships.

The national rate of severe deprivation rose to 8.1% in 2025, compared to 3.5% in 2015. This trend diverges from the EU average, which has decreased to 6.3%. The report highlights a disconnect between macroeconomic indicators, such as GDP growth and employment rates, and the actual living conditions of vulnerable households.

Families with children are disproportionately affected. The rate of severe material and social deprivation for households with children under 16 reached 10.7%, significantly higher than the national average of 8.1%. Analysts suggest that current economic cycles have failed to mitigate the impact of inflation and rising costs on low-income families, prompting calls for improved policies regarding housing, education, and direct transfers for families.