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November 1, 2007
 
   
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Costa Rica Sees Drop in
Poverty and Unemployment

By Gillian Gillers
Tico Times Staff | ggillers@ticotimes.net

Poverty levels have dropped significantly for the first time in 13 years, according to the National Statistics and Census Institute (INEC), which yesterday released the results of its annual household survey.

After surveying more than 14,500 homes across the country in July, the institute found that the number of poor Costa Ricans dropped from 20.2% to 16.7% last year. The institute also found that unemployment dropped from 20% to 4.6%.

Victor Hugo Céspedes, vice-president of the institute's council of directors, said between 1% and 1.4% of the decrease in poverty could be attributed to state programs like scholarships, pensions and state aid. Other factors are an increase in household income, decrease in inflation and steady 6% growth in gross domestic product, he said.

The institute has set the poverty line at monthly incomes of $105 per person in urban areas and about $84 per person in rural areas.

“There are some people who think poverty is reduced by ideological rhetoric,” said Housing Minister Fernando Zumbado, who applauded the data in a press conference yesterday. “Poverty is reduced by social programs and an economy that works for everyone.”

Still, the boon hasn't been equal across all areas. The poorest 20% and the richest 20% have seen their monthly incomes increase more than the rest of the population. Meanwhile, the number of unskilled jobs has grown slower than the number of skilled jobs such as work in hotels, restaurants, and the financial and construction sectors.

 
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