High GDP, Low Wages: Madeira Struggles With Poverty

High GDP, Low Wages: Madeira Struggles With Poverty

Madeira’s poverty rate is improving on paper, but despite a high GDP, Madeira grapples with inequality. Overcrowded homes, growing inequality, and youth without opportunities reveal cracks in the region’s economic success.

Study Finds Mixed Progress in Reducing Poverty

A recent study on poverty in Madeira shows a complex picture. While the overall poverty rate has slightly dropped, several key indicators show that many people are still struggling. The region continues to have some of the highest rates of poverty-related problems in Portugal.

Although Madeira has the second-highest GDP among Portuguese regions in 2023, this economic strength does not seem to help a large part of the population. In fact, Madeira and the Azores often take turns having the highest numbers of people at risk of poverty, including many who are employed.

Even though we are the third region in the country with the highest GDP, we alternate with the Azores in terms of workers or population at risk of poverty. We also have another figure confirmed by the study: the gap between those who earn the most and those who earn the least is growing.

RTP Madeira

Gap Between Rich and Poor Is Widening

The study points to a growing income gap in Madeira. Even though there was a small improvement in 2024, the difference between those who earn the most and those who earn the least keeps increasing.

This economic divide is seen not only in income but also in housing. One in every four residents lives in an overcrowded home. Poor living conditions remain a daily reality for many, especially in urban areas.

GDP per Capita in 2023: Madeira Ranks Second and Way Above the National Average

Source: Wikipedia

Rank

Region

GDP per Capita (€)

% of National Average

1

Greater Lisbon

39,942

158.0%

2

Autonomous Region of Madeira

27,369

108.3%

3

Algarve Region

27,303

108.0%

4

Alentejo Region

23,910

94.6%

5

Autonomous Region of the Azores

22,346

88.4%

6

Centro Region

21,753

86.1%

7

North Region

21,509

85.1%

8

West and Tagus Valley

19,603

77.6%

9

Setúbal Peninsula

17,069

67.5%

the causes of poverty in the region points to a decrease in the poverty rate, but some indicators remain high. The Madeira region appears in almost all the worst indicators compared to the rest of the country.

RTP Madeira

Young People Face Fewer Opportunities

One of the most worrying findings is the high number of young people who are not working or studying. Madeira has the second-highest rate of this group in the country. This suggests a lack of opportunities and support for young adults entering the job market or trying to continue their education.

Low wages and limited job options in the region may explain part of the problem. The economy depends heavily on a few industries, which makes it harder to create more and better jobs.

Indicators point Madeira at the highest risk of poverty

Debate Calls for Political Responsibility

The debate around the study took place at the Madeira Teachers’ Union and was organized by the movement “Eradicate Poverty.” Speakers, discussed the issue of “hidden poverty” - people who appear to live normal lives but face financial hardship.

It was highlighted how Madeira is often moving in the opposite direction of national trends. While some parts of Portugal are improving, Madeira still struggles with working poverty. The speaker questioned whether the region's political autonomy is doing enough to help residents live with dignity and security.

As Madeira celebrates 50 years of regional autonomy and Portugal reflects on the April Revolution, the speakers called for more attention to the social problems that remain. They argued that a stronger focus on fair wages, better education, and more diverse economic development is needed if the region is to improve the lives of its people.

Source: RTP Madeira

Comments