The report from France Stratégie, published on October 18, 2021, provides an overview of the effects of the COVID-19 pandemic on poverty levels in France, and evaluates the government's response to mitigate these effects.
Effects of the Crisis on Poverty:
- The pandemic has significantly impacted the economic and social landscape, exacerbating poverty levels across different temporal scales. Concerns about increased health risks for the poor, particularly during the first lockdown, were confirmed by data and studies. The pandemic has also intensified existing inequalities, especially in education and mental health, particularly affecting young people.
- The economic recovery is underway, with the job market returning to pre-pandemic levels without significant increases in unemployment. There have been no notable waves of business failures among self-employed individuals. The number of recipients of the Minimum Income Guarantee (RSA) saw a sharp increase in 2020 but has since stabilized. There is no evidence of increased rent arrears. In the overseas regions (DROM), the impact was less severe than anticipated, with the job market and RSA beneficiary numbers stabilizing.
- However, there has been a notable rise in the number of people in poverty due to the pandemic, with a mechanism driving both new entries and continued poverty for those close to it. There has been an increase in food aid usage and new clientele at food distribution centers in 2020, reflecting rising food insecurity. The crisis has particularly affected young people’s incomes, especially those from lower socioeconomic backgrounds.
Government Response:
- The government has implemented substantial financial measures aimed at preventing poverty entry and maintaining income levels for employees through the activity reduction scheme. Measures to preserve rights have been put in place, primarily for unemployed individuals. Social benefits like the RSA, AAH, PA, and CSS have been maintained, albeit temporarily and for fewer people. Exceptional monetary aids were provided in 2020, mainly targeting RSA and ASS recipients, as well as the most financially vulnerable families and young people.
- The report notes that while the government's response was generally proportional and targeted, more information is needed on how this support was tailored to meet regional needs. The precise impact of these emergency anti-poverty measures on income distribution, poverty rates, and inequality remains uncertain. It calls for a comprehensive evaluation of the redistributive effects of all measures taken.
- The pandemic's effects on the overseas regions, their gendered impacts, and their consequences for independent and precarious individuals require further examination. The report highlights the need for qualitative data to complement quantitative indicators. The real-time monitoring system set up during the crisis should be sustained to provide updated poverty statistics. The role of public services was acknowledged, though difficulties accessing these services by the most disadvantaged were reported. The human resources supporting anti-poverty strategies were mobilized, and support for the associative sector to address crisis-induced needs was provided.
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