Urban-rural Europe - income and living conditions

Data extracted: July 2024.

Planned article update: September 2026.

Highlights

By global standards, most people living in the European Union (EU) are prosperous: they have relatively high income/wealth and a positive sense of well-being, while there are established social protection systems that provide a safety net for many less fortunate people.

Indeed, the European social model is based on offering protection to people who are most in need. Regardless of national differences, the implementation of social protection in EU countries is designed to provide people with some protection against, among other issues, the costs of bringing up a family or housing, the risks related to unemployment, poor health, poverty or social exclusion, and the consequences of old age. Nevertheless, 94.6 million people, or more than 1 in 5 (21.4%) of the EU’s population, were at risk of poverty or social exclusion in 2023; see Infographic 1.

The COVID-19 crisis underlined systemic inequalities in living conditions both between and within individual EU countries. While some people were fortunate enough to continue working full-time from home (and in some cases were even able to save more of their income than usual), many people in precarious employment or working in sectors/businesses impacted by successive lockdowns faced reduced earnings, short-time work and unemployment. While the impact of the pandemic abated in 2022 and 2023, concern shifted to the cost-of-living crisis, which led several EU governments to introduce a range of support schemes, such as energy price caps, rebates for fuel prices or additional support for low income households / pensioners (who typically spend a disproportionate amount of their income on essential purchases such as housing, food and energy).

This article forms part of Eurostat’s twin publications on Rural Europe and Urban Europe.

Infographic 1: How many people in the EU were at risk of poverty or social exclusion?
(million, 2023)
Source: Eurostat (ilc_pees01n)

People at risk of poverty or social exclusion

The number of people at risk of poverty or social exclusion is a headline indicator for social protection and inclusion within the European pillar of social rights. This indicator monitors the progress towards 1 of the EU’s headline 2030 targets, namely, to reduce the number of people at risk of poverty or social exclusion by at least 15 million (when compared with 2019).

More about the data: people at risk of poverty or social exclusion

The risk of poverty and social exclusion isn’t dependent strictly on a household’s level of income, as it may also reflect joblessness, low work intensity, working status, or a range of other socioeconomic characteristics. To calculate the number or share of people who are at risk of poverty or social exclusion 3 separate criteria are combined (see the infographic at the start of this article), covering people who are in at least 1 of the following situations

at risk of poverty – people with an equivalised disposable income (after social transfers) below the at-risk-of-poverty threshold, which is set at 60% of the national median equivalised disposable income
facing severe material and social deprivation – people unable to afford at least 7 out of 13 deprivation items (6 related to the individual and 7 related to the household) that are considered desirable – or even necessary – to lead an adequate quality of life
living in a household with very low work intensity – where working-age adults (aged 18–64 years, excluding students aged 18–24 years and retired people) worked for 20% or less of their combined potential working time during the previous 12 months.

There were 4 consecutive annual decreases across the EU in the share of people who were at risk of poverty or social exclusion between 2015 (the 1st reference year for which data are available) and 2019. This pattern was largely repeated when analysed by degree of urbanisation (see Figure 1); the only exception was for people living in cities, where there was no change in the share of people who were at risk of poverty or social exclusion in 2019.

With the onset of the COVID-19 crisis, there was an increase in the share of people in the EU who were at risk of poverty or social exclusion in 2020: this was the case for people living in cities (up 0.6 percentage points), towns and suburbs (up 0.5 points), as well as rural areas (up 0.4 points). There was a mixed picture in 2021, as the share of people at risk of poverty or social exclusion continued to rise among those living in towns and suburbs (up 1.2 points), was unchanged among people living in cities, while it fell among people living in rural areas (down 0.8 points, below the previous low of 2019). A similar pattern was observed in 2022, as the share of people at risk of poverty or social exclusion rose among people living in towns and suburbs (up 0.2 points), while it fell for the other 2 categories: down 0.3 points for people living in cities and 0.4 points for people living in rural areas. In 2023, a fall was recorded for all 3 categories, with a relatively large decrease among people living in rural areas (down 0.7 points) and a modest fall for the other 2 categories (both down 0.1 points). As a result, the at risk of poverty or social exclusion rates for the 3 degrees of urbanisation converged to their narrowest range in 2023; see Figure 1.

Figure 1: People at risk of poverty or social exclusion, by degree of urbanisation, EU, 2015–23
(%)
Source: Eurostat (ilc_peps13n)

In 2023, the EU’s at-risk-of-poverty or social exclusion rate was highest for people living in cities (21.6%), followed by those living in rural areas (21.4%) and in towns and suburbs (21.0%). Although these latest rates for the EU were within a relatively narrow range, there was a much wider variation observed in several of the EU countries. This was particularly notable in Romania, where the risk of poverty or social exclusion was faced by close to half (45.1%) of the rural population, which was 26.6 percentage points higher than the rate for people living in cities (18.5%). A similar pattern existed in Bulgaria, where a peak of 39.3% was recorded among people living in rural areas, some 17.3 points higher than the rate for those living in cities (22.0%).

Some of the highest shares of people at risk of poverty or social exclusion were recorded in rural areas of principally eastern and southern EU countries. These included the shares mentioned above for Romania (45.1%) and Bulgaria (39.3%), as well as a share of 34.5% of the rural population in Malta. By contrast, the highest risk of poverty or social exclusion was recorded among people living in cities in several western and Nordic EU countries, for example

28.5% of the population living in Belgian cities
27.3% of the population living in Austrian cities
24.7% of the population living in German cities.

Figure 2: Poverty or social exclusion indicators by degree of urbanisation, 2023
(%)
Source: Eurostat

(ilc_peps13n), (ilc_li43), EU-SILC,

(ilc_lvhl23n)

At-risk-of-poverty rate

The at-risk-of-poverty rate (after social transfers) is 1 of the 3 criteria used to identify people at risk of poverty or social exclusion. It identifies the proportion of the population which lives in a household with an annual equivalised disposable income that is below 60% of the national median (a threshold which is set separately for each EU country). As such, this indicator provides a measure of relatively low income compared with other residents of the same country; it doesn’t necessarily imply a low overall standard of living.

In 2016, the EU’s at-risk-of-poverty rate by degree of urbanisation peaked at 20.4% among people living in rural areas; the lowest rate in that year was recorded among people living in towns and suburbs (15.9%), a gap of 4.5 percentage points; see Figure 3. During the 7 years that followed, there was initially a step-like reduction followed by a continuous fall in the risk of poverty for people living in rural areas, whereas for people living in cities there was almost no change. The developments for people living in towns and suburbs were different: a clear fall was observed between 2017 and 2019 and a notable increase in 2021. In 2023, the gap between the highest and lowest at-risk-of-poverty rates was 1.3 points, with a peak of 17.1% for people living in rural areas and a low of 15.8% for people living in towns and suburbs.

Figure 3: People at risk of poverty, by degree of urbanisation, EU, 2015–23
(%)
Source: Eurostat (ilc_li43)

In 2023, the highest risks of poverty for people living in cities were recorded in Austria (22.9%), Estonia (21.2%), Belgium (19.5%) and Italy (19.3%). At the other end of the scale, less than 1 in 10 people living in the cities of Hungary, Poland, Ireland and Romania faced the risk of monetary poverty. There were 11 EU countries where more than 1 in 5 of the rural population was at risk of poverty, with the two highest shares in Malta (33.8%) and Romania (35.5%). Czechia (9.6%) was the only EU country to report that fewer than 1 in 10 people living in rural areas were at risk of poverty.

Data by EU country for the at-risk-of-poverty rate are presented above as part of Figure 2 (use the dropdown list to select the indicator).

Severe material and social deprivation rate

The severe material and social deprivation rate is also 1 of the 3 criteria used to identify people at risk of poverty or social exclusion. It provides information on the share of the population who couldn’t afford (rather than didn’t want or didn’t need) at least 7 out of 13 surveyed items. In 2023, the EU’s severe material and social deprivation rate was 6.8%, which was 0.1 percentage points higher than the year before (6.7%).

During the period 2019–23, there were only modest changes in severe material and social deprivation rates within the EU when analysed by degree of urbanisation (see Figure 4). The largest increase – up 1.0 percentage point – was recorded among people living in towns and suburbs, while there was also a (smaller) increase for people living in cities (up 0.1 points). By contrast, the EU’s severe material and social deprivation rate fell 1.0 points for people living in rural areas during the period under consideration.

Figure 4: Severe material and social deprivation rate, by degree of urbanisation, EU, 2019–23
(%)
Source: Eurostat (EU-SILC ad hoc data extraction)

Figure 2 above (use the dropdown list to select the severe material and social deprivation rate) shows that most EU countries had severe material and social deprivation rates in 2023 that were below 10.0%. This pattern was generally repeated across all 3 degrees of urbanisation, as the only exceptions were

Bulgaria and Romania, where double-digit rates were recorded for all 3 degrees of urbanisation, with the highest rates among people living in rural areas – 25.1% in Romania and 23.8% in Bulgaria
Greece, where broadly similar rates were recorded for all 3 degrees of urbanisation (in a range of 12.1–14.2%)
Hungary, where double-digit rates were recorded for people living in towns and suburbs (10.2%) and in rural areas (15.7%), but not for people living in cities (5.8%).

For southern and Nordic EU countries, there was no common urbanisation pattern for severe material and social deprivation rates, but elsewhere a geographic split could be observed: the highest rates were often recorded among people living in

rural areas in eastern EU countries – this was the case in Bulgaria, Croatia, Hungary, Romania and Slovakia
cities in western EU countries – this was the case in Belgium, Germany, Ireland, the Netherlands and Austria
towns and suburbs in the 3 Baltic countries of Estonia, Latvia and Lithuania.

People living in households with very low work intensity

The final criteria used to identify people at risk of poverty or social exclusion is the share of people aged 0–64 years living in households where the adults aged 18–64 years (excluding students and retired people) worked no more than 20% of their total potential during the previous 12 months. Within the EU, there were 26.5 million people who were in this situation in 2023, equivalent to 8.0% of the population that was aged less than 65 years. The share of people living in households with very low work intensity was higher for people living in cities (9.2%) than it was for people living in towns and suburbs (7.9%) or in rural areas (6.3%).

During the period 2015–23 (see Figure 5), the share of people aged 0–64 years living in households across the EU with very low work intensity generally followed a downward path from 2015 to 2019 for all 3 degrees of urbanisation. Thereafter, there were contrasting developments

for people living in cities and in towns and suburbs, the share of people living in households with very low work intensity increased in both 2020 and 2021, followed by a return to a downward development in 2022 and 2023
for people living in rural areas, the share of people living in households with very low work intensity continued to fall, except for a modest increase in 2021.

The difference in the share of people living in households with very low work intensity widened to 3.8 percentage points in 2021, with the highest share recorded among people living in cities and the lowest share among people living in rural areas. The difference between these 2 shares narrowed in 2022 and again in 2023, with a gap of 2.9 points for the latest year available.

Figure 5: People (0–64 years) living in households with very low work intensity, by degree of urbanisation, EU, 2015–23
(%)
Source: Eurostat (ilc_lvhl23n)

In keeping with the other criteria that compose the at-risk-of-poverty or social exclusion rate, there was something of a geographic split when analysing the share of people aged 0–64 years living in households with very low work intensity. In 2023, most of the western and southern EU countries and all of the Nordic EU countries recorded their highest shares for people living in cities, whereas in most of the eastern and all of the Baltic EU countries people living in rural areas tended to record the highest shares.

In Austria, Germany and Belgium, the share of people living in households with very low work intensity was more than 6.0 percentage points higher among people living in cities than it was for people living in rural areas.
By contrast, the share of people living in households with very low work intensity was considerably higher among people living in rural areas (than among people living in cities) in Lithuania (7.3 points), Bulgaria (7.0 points) and Romania (6.6 points).

Data for people living in households with very low work intensity are presented above as part of Figure 2 (use the dropdown list to select the indicator).

Housing

Demographic changes have led, in some cases, to a mismatch between the demand for and supply of housing. A growing proportion of people in the EU are living alone, with many older people continuing to live in houses or flats that they previously occupied with a larger family, while others face overcrowded conditions.

In 2023, 33.3% of the EU’s population was living in an under-occupied dwelling. This share was considerably higher among those living in rural areas, where living space tends to be more abundant. Indeed, 40.0% of the EU’s rural population was living in an under-occupied dwelling, compared with 35.6% for those living in towns and suburbs, and 26.7% for people living in cities; see Figure 6.

Figure 6: Housing indicators, by degree of urbanisation, 2023
(%)
Source: Eurostat

(ilc_lvho50d),

(ilc_lvho05d)

Across most EU countries, it was also generally the case that the highest proportion of people living in under-occupied dwellings was recorded for those living in rural areas. In 2023, this was the situation in 23 out of the 27 EU countries; the only exceptions were

Cyprus and Hungary, where a slightly higher share of people living in cities were living in under-occupied dwellings
Croatia and Malta, where a slightly higher share of people living in towns and suburbs were living in under-occupied dwellings.

In 2023, there were 10 EU countries where more than half of the rural population was living in an under-occupied dwelling. The highest shares – 69.7–72.8% – were recorded in the Netherlands, Cyprus, Belgium, Spain, Luxembourg and Malta, with a peak of 72.8% in Ireland.

There was no distinct pattern concerning the change in the share of people living in under-occupied dwellings between 2022 and 2023, as 18 EU countries reported a mix of positive and negative rates of change for the 3 categories within the degree of urbanisation classification. In Bulgaria, Czechia, Greece and Croatia, the share of people living in under-occupied dwellings increased for all 3 categories, while in Ireland, France, Lithuania, Hungary and Portugal it fell.

For people living in cities, the highest increase was in Luxembourg (up 3.7 percentage points) and the largest fall was in Malta (down 6.8 points).
For people living in towns and suburbs, the highest increases were in Bulgaria and Sweden (up 2.4 percentage points) and the largest falls were in Ireland and Latvia (down 1.8 points).
For people living in rural areas, the highest increase was in Greece (up 2.5 percentage points) and the largest fall was in Hungary (down 4.0 points).

Figure 7: People living in under-occupied dwellings, by degree of urbanisation, 2023
(percentage points, annual change compared with 2022)
Source: Eurostat (ilc_lvho50d)

While a relatively high share of the EU’s population live in under-occupied dwellings, it is also the case that a considerable share live in overcrowded accommodation (which lacks a minimum number of rooms in relation to the number and type of relationships of occupants). In 2023, the overcrowding rate across the EU was 16.8%. By degree of urbanisation, the highest overcrowding rate was recorded among people living in cities (19.9%), with lower shares for those living in rural areas (15.0%) and towns and suburbs (14.8%).

Data by EU country for the overcrowding rate are presented above as part of Figure 6 (use the dropdown list to select the indicator).

Across most EU countries, it was also generally the case that the highest overcrowding rate was recorded for people living in cities. In 2023, this was the situation in 24 out of the 27 EU countries; the only exceptions were

Ireland and Slovakia, where the overcrowding rate was highest for people living in towns and suburbs
Hungary, where the overcrowding rate was highest for people living in rural areas.

In 2023, there were 3 EU countries where more than 40.0% of the people living in cities occupied an overcrowded dwelling. Such shares were recorded in Bulgaria (42.8%) and Romania (43.3%), with a peak of 47.8% in Latvia.

There was also no distinct pattern concerning the change in the share of people living in overcrowded dwellings between 2022 and 2023, as 17 EU countries reported a mix of positive and negative rates of change for the 3 categories within the degree of urbanisation classification. In Estonia, France, Luxembourg, the Netherlands, and Portugal, the share of people living in an overcrowded dwelling increased for all 3 categories, while in Bulgaria, Denmark, Croatia, Poland and Slovakia it fell.

For people living in cities, the highest increase was in Portugal (up 4.1 percentage points) and the largest fall was in Austria (down 2.6 points).
For people living in towns and suburbs, the highest increase was also in Portugal (up 3.5 percentage points) and the largest fall was in Hungary (down 4.2 points).
For people living in rural areas, the highest increase was in Hungary (up 2.6 percentage points) and the largest fall was in Poland (down 3.0 points).

Figure 8: Overcrowding rate, by degree of urbanisation, 2023
(percentage points, annual change compared with 2022)
Source: Eurostat (ilc_lvho05d)

Income

The issue of inequality has gained increasing importance in political and socioeconomic discourse

in the aftermath of the global financial and economic crisis
in the context of people and specific geographical territories being ‘left behind’
in relation to the cost-of-living crisis.

GDP per inhabitant has traditionally been used to assess divergence/convergence in mean living standards between countries. However, it doesn’t capture the distribution of income within a population and thereby does little to reflect economic inequalities.

Equivalised disposable income is the total income of a household, after tax and other deductions, that is available for spending or saving, divided by the number of household members, where these have been converted into equalised adults; household members are equalised or made equivalent by weighting each according to their age, using the so-called modified OECD equivalence scale.

In 2023, median equivalised net income in the EU was €20 350 per year. Figure 9 shows that people living in cities and in towns and suburbs generally had a higher level of income than those living in rural areas. Incomes grew at a relatively steady pace across the EU between 2013 and 2020. In 2021, there was a slowdown or a reversal of the development, which may be linked (at least in part) to the COVID-19 crisis. This was followed by renewed income growth for all 3 degrees of urbanisation in 2022 and 2023.

In 2023, median equivalised net income ranged from €18 352 per year among people living in rural areas up to €21 136 per year for people living in cities. As such, the median equivalised net income of people living in cities was 1.15 times as high as that for people living in rural areas.

Figure 9: Median equivalised net income, by degree of urbanisation, EU, 2013–23
(€)
Source: Eurostat (ilc_di17)

Figure 10 shows that income levels varied considerably between EU countries. These wide variations exist even though the information presented is shown in purchasing power standards (PPS). PPS is a unit that takes account of price-level differences between countries; comparisons based on PPS usually result in narrower ranges between countries than when values are compared in euro.

The median equivalised net income of people living in cities was generally higher than that recorded for people living in towns and suburbs or rural areas. This pattern was exhibited in 19 out of 27 EU countries in 2023; the only exceptions were:

Belgium, Denmark, Ireland, Malta, the Netherlands and Slovenia, where people living in towns and suburbs had the highest median levels of net income;
Germany and Austria, where people living in rural areas had the highest median levels of net income.

Looking in more detail at income levels for people living in cities, the highest median equivalised net income in 2023 was recorded in Luxembourg (40 797 PPS). This was followed at some considerable distance by Austria (27 013 PPS) and the Netherlands (26 177 PPS), while Germany, Ireland and Sweden each recorded levels that were within the range of 23 015–23 773 PPS. By contrast, people living in the cities of Slovakia, Hungary, Greece and Bulgaria had the lowest levels of net income – less than 13 400 PPS.

In 2023, the median equivalised net income of people living in rural areas of the EU was 88.2% of the average recorded for people living in cities. The median equivalised net income of people living in rural areas of Romania (8 579 PPS) was less than 60% of that recorded for people living in cities (14 497 PPS). Bulgaria was the only other EU country where the median equivalised net income of people living in rural areas was less than 75% of the average recorded for people living in cities.

Figure 10: Income indicators, by degree of urbanisation, 2023

(%)
Source: Eurostat (ilc_di17),

(ilc_di23)

Across the EU, median equivalised net income for males was €20 867 in 2023; this was slightly more than €1 000 higher than the median value for females (€19 858). These equivalised income figures present an average that covers the whole population (including people who aren’t in work). As such, they are quite different from the information often presented in relation to gender pay gap statistics; the latter are based on unadjusted figures, measuring the difference between average gross hourly earnings of men and women (covering only people who are in work).

Figure 11 shows that – when analysed by degree of urbanisation – the EU gender gap for median equivalised net income was often situated within a relatively narrow range during the last decade. In 2023, the difference between male and female incomes was 5.4% of male incomes among people living in towns and suburbs, while smaller differences were recorded for people living in cities (4.8%) and in rural areas (4.1%).

Figure 11: Gender gap for median equivalised net income, by degree of urbanisation, EU, 2013–23
(difference between male and female incomes as % of male incomes)
Source: Eurostat (ilc_di17)

In all EU countries, median equivalised net incomes for males were higher than those for females. This was also observed for nearly all EU countries in each of the 3 degrees of urbanisation. There was only 1 exception where median equivalised net income was higher for females than for males; this was the case for people living in the cities of Slovakia. The largest gender gaps were recorded among people living in the cities of Hungary and the 3 Baltic countries, and in the towns and suburbs of Lativa and Lithuania.

Note: a positive value indicates that male incomes were higher than female incomes.

Figure 12: Gender gap for median equivalised net income, by degree of urbanisation, 2023
(difference between male and female incomes as % of male incomes)
Source: Eurostat (ilc_di17)

The unequal distribution of income can, among other consequences, lead to economic inequalities that manifest themselves in various forms of poverty or social exclusion. In 2023, almost 1 in 5 (19.3%) of the EU’s population had a level of income that was at least 150% of the median income. By this measure, the distribution of income was less equitable across those living in cities, where almost 1 in 4 (24.0%) of the population had a level of income that was at least 150% of the median income, with lower shares recorded among those living in towns and suburbs (17.7%) and, most notably, rural areas (14.2%).

Figure 10 above (use the dropdown list to select the indicator) shows that income inequalities (as measured by the share of people having an income at least 150% of the median) were generally concentrated in cities. In 2023, this was particularly the case in Romania, Bulgaria, Lithuania and Luxembourg where more than a third of the population living in cities had an income that was at least 150% of the median. By contrast, there were only 5 EU countries that were an exception, where the highest share was not observed for cities

in Latvia, Ireland and Malta, a higher share of the people living in towns and suburbs had a level of income that was at least 150% of the median income
in Belgium, the joint highest shares were recorded for people living in towns and suburbs and in rural areas
in the Netherlands, the highest share was recorded for people living in rural areas.

Source data for tables and graphs

Income and living conditions: tables and figures

Context

On 4 March 2021, the European Commission set out its ambition for a stronger social EU to focus on education, skills and jobs, aiming for a fair, inclusive and resilient socioeconomic recovery from the COVID-19 crisis, while fighting discrimination, tackling poverty and alleviating the risk of exclusion for vulnerable groups. The European pillar of social rights action plan (COM(2021) 102 final) outlines a set of specific actions and headline targets for employment, skills and social protection in the EU. It includes a benchmark target for reducing the number of people at risk of poverty or social exclusion by at least 15 million people between 2019 and 2030 (of which, at least 5 million should be children).

Explore further

Database

Thematic section

Publications

Statistical publications

Eurostat regional yearbook – 2024 edition
Urban Europe – statistics on cities, towns and suburbs – 2016 edition

Methodological publications

Applying the Degree of Urbanisation – A methodological manual to define cities, towns and rural areas for international comparisons – 2021 edition

Methodology

External links

Urban Agenda for the EU

European Commission – Directorate-General Agriculture and rural development

Rural development

European Commission – Directorate-General Employment, Social Affairs and Inclusion

Employment, social affairs and inclusion

European Commission – Directorate-General Regional and Urban Policy

European Committee of the Regions

European Committee of the Regions – political priorities 2020–25

European networks

United Nations

Legislation

Statistical legislation

Income and living conditions – legislation
Regulation (EU) 2017/2391 of the European Parliament and of the Council of 12 December 2017 amending Regulation (EC) No 1059/2003 as regards the territorial typologies (Tercet)
Consolidated and amended version of Regulation (EC) No 1059/2003 of the European Parliament and of the Council on the establishment of a common classification of territorial units for statistics (NUTS)

Policy legislation

Commission Delegated Regulation (EU) No 522/2014 of 11 March 2014 supplementing Regulation (EU) No 1301/2013 of the European Parliament and of the Council with regard to the detailed rules concerning the principles for the selection and management of innovative actions in the area of sustainable urban development to be supported by the European Regional Development Fund
Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)
Regulation (EU) No 1310/2013 of the European Parliament and of the Council of 17 December 2013 laying down certain transitional provisions on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)

Visualisation

Regions and cities illustrated (RCI) – Degree of urbanisation