Financial distress in EU ‘rising’

Irish households have lost a sixth of their disposable income due to government changes to benefits and taxes over the past five years, according to an EU study.

While employment is showing signs of increasing, up to half those at work are in part-time jobs increasing financial distress on families and individuals. While employment is showing the first signs of stabilising with a mild increase in the numbers employed across the EU, the kind of work and lower pay are increasing poverty and financial distress despite the crisis being official over.

The European Commission’s quarterly study says, so far, the turnaround in economies is not benefitting ordinary people, partly due to a drop in the real value of wages and partly due to people who need full-time work making do with part-time jobs.