Record Poverty Levels Reveal Macron’s Failure To Save France from Decline

France uses a relative poverty threshold, meaning it is defined in relation to the overall income distribution rather than an absolute amount. The poverty line is generally set at 60% of the median income. Anyone whose income falls below this threshold is considered to be living in poverty.

Between 2022 and 2023, the poverty rate rose by almost one percentage point, from 14.4% of the population to 15.4%. This is the highest rate since the indicator was launched by the national statistics institute in 1996.

In concrete terms, this means that 9.8 million people in France are living below the poverty line. In reality, the figure exceeds 11 million if we include overseas departments and count homeless people and those living in institutions. In just one year, 650,000 people have fallen below the poverty line.

The explanations for this unprecedented deterioration—the last time the situation was this bad was in the 1970s—are many and complex.

Overall, the situation reflects the inability of Emmanuel Macron’s teams to work for the good of the most disadvantaged groups, who are the first to be hit by inflation that has not been offset by wage increases.

Upper classes are faring better, “thanks to the good situation on the labour market and the return on financial products,” notes Michel Duée, head of the INSEE department on household living conditions, who is in charge of the report. Pensioners have also been relatively spared, as minimum pensions have been increased as part of the pension reform.

The rise in energy prices has had serious consequences for the poorest families. Temporary aid to offset inflation in 2022 has come to an end, and its absence is being acutely felt. “Electricity and gas cuts for non-payment are skyrocketing, the number of people who say they are cold in their homes has almost doubled, and we are seeing a sharp rise in evictions,” says Manuel Domergue, director of studies at the Foundation for Housing the Disadvantaged.

Single-parent families (the overwhelming majority of whom are women raising children alone) are the hardest hit. Their poverty rate rose by nearly 3 points between 2022 and 2023, automatically leading to an increase in poverty among children under 18. Although single-parent families have seen some of their benefits increased, the government has not proposed any long-term policies to prevent the weakening of the family unit and the proliferation of single-parent families, which is a key factor in poverty, despite urgent calls from family associations.

Leaders of anti-poverty associations met with Prime Minister François Bayrou but are alarmed by the vagueness of his promises. He speaks of reducing poverty within 10 years—a statement that commits to almost nothing. “The time for one-off measures is over; structural measures are needed,” insists Domergue. Unfortunately, structural measures do not seem to be on the agenda.