October 27, 2020

Half of the millennia in Spain are left out of the middle class

Half of the millennia in Spain are left out of the middle class

Half of the twenty-year-olds born in Spain between 1983 and 2002, known as the Millennial generation, have stayed or will be left out of the middle class, according to a study by the Organization for Economic Cooperation and Development (OECD) , presented this Wednesday.

The report highlights that while 60 percent of Spaniards born between 1942 and 1964 belonged to the middle class when they were 20 years old, this percentage was reduced to 58 percent with those born between 1965 and 1982 (generation X) and 50 percent when it comes to the millennial.

Data below the average of the OECD countries, in which 68 percent of those born between 1942 and 1964 were part of the middle class at 20 years of age, compared to 64 percent of generation X and 60 percent of the Millennial generation.

The report of the OECD considers within the middle class families whose income is around 75% and 200% of the average salary of each country, ie between 11,450 and 30,542 euros (between 12,906 and 34,427 dollars) per person for the case of Spain, according to the organization.

The OECD noted that between the mid-80s of the last century and the middle of the first decade of this century, the number of households in the OECD countries that belonged to the middle class fell from 64% to 61%, so who urged the governments to take measures to stop this decline.

According to the document presented on Wednesday, it is increasingly expensive for the middle class to maintain their lifestyle, especially for the cost of housing, good education and health care, which have grown above wages, which has led to one out of five middle class families spending more than they earn.

The OECD specifies that in Spain 55% of the population meets the criteria of what is considered middle class, while 17% of Spaniards have low income -between 50% and 75% of the average salary-.

In addition, 16% of Spaniards are poor – they earn less than 50% of the average salary – compared to 11% of the average for OECD countries.

At the other extreme, only 12% of Spaniards earn more than double the average salary, compared to 9% of the average in the OECD countries.

As for housing expenses, they have progressively absorbed more and more middle-class resources, according to the report, which points out that in 2015, 33 percent of the expenditure of Spanish middle-class households was dedicated to the household, to 29 percent in 2005 and 24 percent in 1995.

Compared with the rest of the countries, although in 1995 Spain's housing spending was one percentage point below the average, in 2015, Spanish families exceeded the average by one point.

The study also pays attention to the anxiety of the middle class for fear that many jobs will end up being automated.

In this section, the report points out that 24% of the jobs occupied by workers in the Spanish middle class have a "high risk" of automation, compared to 18% of the general average.

On the other hand, 29% of the jobs in the class with fewer resources and 15% of the jobs of those who enter more, are in this same situation of risk.


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