(MENAFN- Swissinfo) Low-income households in Switzerland have been particularly hard hit by the coronavirus crisis, while those on high incomes are still managing relatively well, according to a large-scale survey of people living in the country.
This content was published on February 23, 2021 - 12:18 February 23, 2021 - 12:18 swissinfo.ch/jc
Those with a household income of under CHF4,000 ($4,480) saw their earnings drop by an average of 20% since the start of the pandemic, while earnings of households with monthly incomes of more than CHF16,000 fell by 8%, according to a study by the KOF Swiss Economic InstituteExternal link released on Tuesday.
High-income households cut their spending more (by around 16%) than low-income ones (12%), but for different reasons. Wealthier households cut their expenses mainly because they had fewer needs and fewer opportunities to spend. Although these reasons also apply to low-income households, 11% of these said they cut spending because they simply had less money.
Increasing inequality is also reflected in the levels of household saving one year after the outbreak of the pandemic, said KOF. Whereas savings have fallen significantly among low-income households, they have risen among half of households on the highest incomes. Around 39% of those on monthly household incomes of less than CHF4,000 even said they had been forced to draw on their savings to cover current expenses.
The study found that the mental health of people on low incomes has also steadily worsened since the outbreak of the pandemic last spring. People affected by unemployment have often reported being in particularly poor health, it said.
More
More
MENAFN23022021000210011054ID1101648444
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.