Germany News: 13 Million Living at Risk of Poverty

Germany, Europe’s largest economy and a symbol of postwar prosperity, is confronting a sobering reality: nearly 13 million people are now considered at risk of poverty, according to the latest figures released by national statistical authorities. The data highlights growing inequality in a country long associated with economic stability and a strong social safety net.
The figures define those at risk of poverty as individuals earning less than 60 percent of the median national income. While Germany continues to post moderate economic growth, rising living costs and stagnating wages for many workers have pushed millions closer to financial insecurity.
A Widening Gap
Economists say the problem is not a sudden collapse but the result of years of structural pressures. Housing prices have soared in major cities such as Berlin, Munich and Hamburg, while energy and food costs surged following global supply disruptions and geopolitical tensions.
“Germany has not experienced mass unemployment, but it has seen a sharp rise in the cost of basic necessities,” said Claudia Weber, a social policy analyst based in Frankfurt. “For low-income households, even small price increases translate into real hardship.”
Single parents, pensioners, migrants and part-time workers are among the groups most affected. In some urban areas, more than one in five residents are classified as at risk of poverty.
Working but Still Poor
One of the most troubling trends is the rise of the “working poor.” Millions of Germans now hold jobs yet struggle to cover rent, utilities and food. Temporary contracts and part-time employment remain common in service industries, limiting financial security even for those who are officially employed.
“I work full time, but I still have to choose between paying rent and buying new clothes for my children,” said Sabine Müller, a supermarket employee in Cologne. “It feels like I am always one unexpected bill away from disaster.”
Trade unions argue that wage growth has failed to keep pace with inflation, especially in sectors such as retail, hospitality and care services.
Regional Differences
Poverty risk varies sharply across the country. Eastern German states continue to show higher rates than the west, reflecting long-standing disparities in income and employment opportunities. Rural areas also face challenges as young people migrate to cities, leaving behind aging populations with limited access to services.
Large cities present a paradox: they offer jobs but also impose some of the highest living costs. Rent increases have outpaced salary growth, forcing many families into overcrowded housing or long commutes from distant suburbs.
Pressure on the Welfare System
Germany’s welfare system, designed to prevent extreme poverty, is under growing strain. Social benefits such as housing assistance and unemployment support have been adjusted in recent years, but critics say the increases have not matched inflation.
Charities report rising demand for food banks and emergency aid. “We see more families every month who have never needed help before,” said a spokesperson for a Berlin-based relief organization. “These are not people who are unemployed. They are people whose income simply does not stretch far enough anymore.”
Political Debate Intensifies
The poverty figures have fueled political debate ahead of upcoming regional elections. Opposition parties accuse the government of focusing too much on fiscal discipline and not enough on social protection.
Government officials acknowledge the challenge but emphasize recent reforms, including higher minimum wages and expanded child benefits. “We are investing in social cohesion,” said a spokesperson from the labor ministry. “But the global economic situation has made progress more difficult.”
Still, many policy experts argue that deeper reforms are needed, including stronger rent controls, expanded public housing and targeted tax relief for low-income earners.
Impact on Children
Child poverty remains a particular concern. Roughly one in five children in Germany lives in a household at risk of poverty, according to social organizations. Educators warn that financial insecurity can limit access to extracurricular activities, healthy food and educational resources.
“When children grow up worrying about money, it affects their learning and their future opportunities,” said Martina Klein, a school principal in Dortmund. “We see students arriving hungry or without basic supplies.”
Long-term studies show that children raised in poverty are more likely to face unemployment and health problems later in life, reinforcing cycles of disadvantage.
Looking Ahead
Germany’s economic outlook remains uncertain. Slower growth, an aging population and continued global instability could make poverty reduction even more difficult in the coming years.
Experts stress that the issue is not just about income but about dignity and inclusion. “A society can be wealthy on paper and still leave millions behind,” said Weber. “The real test is whether prosperity is shared.”
For many Germans, the statistics reflect everyday experience: shrinking budgets, rising anxiety and a sense that the promise of stability is slipping away. While Germany remains one of Europe’s strongest economies, the growing number of people at risk of poverty serves as a warning sign that economic success alone does not guarantee social security.
As policymakers debate solutions, the lives behind the numbers continue to tell a story of quiet struggle in a country often seen as immune to such problems. Whether Germany can reverse this trend will depend on how effectively it balances economic competitiveness with social responsibility in the years ahead.