JAMAICA’S poverty rate fell sharply in 2023 as the economy strengthened, but a significant share of households remains exposed to economic shocks, despite higher incomes and spending.

The Jamaica Survey of Living Conditions (JSLC) 2023, a joint publication of the Planning Institute of Jamaica (PIOJ) and the Statistical Institute of Jamaica (Statin), showed the poverty rate declined to 8.2 per cent from 16.7 per cent in 2021.

Real per-capita consumption rose by 5.3 per cent to $545,249, reflecting stronger household spending as economic activity picked up. Inequality also narrowed, with the Gini coefficient improving to 0.356 from 0.3991, suggesting income gains were more evenly distributed.

But the improvement has not translated into broad financial security.

“While poverty has declined, vulnerability remains a concern,” the report noted, pointing to households just above the poverty line as particularly exposed to economic shocks.

About 9.5 per cent of the population is classified as vulnerable, living just above the poverty line. Combined with those below it, roughly 17.7 per cent of Jamaicans are either poor or at risk of falling into poverty.

For many households, higher incomes are being offset by the cost of everyday living.

Only 32.3 per cent of households reported having a reliable main source of income. While 50.8 per cent said their income was sufficient to meet basic needs, that often leaves little room for savings or unexpected expenses.

A further 32.5 per cent said their financial situation had worsened over the past year, compared with 15.0 per cent who reported improvement.

Food security also remains under pressure. Just 51.1 per cent of households reported that they were consistently able to meet daily food needs, a level still below pre-pandemic conditions.

Weak coverage in key social protection areas is also adding to household risk.

Only 20.1 per cent of the population has health insurance coverage, leaving most households exposed to out-of-pocket medical costs. Pension coverage is also limited, with just 32.3 per cent of the elderly receiving a pension.

The report notes that limited access to health insurance and pension coverage increases households’ exposure to financial shocks, particularly among the elderly and lower-income groups.

Health conditions further complicate the picture. Chronic illness affects 23.6 per cent of the population and 62.7 per cent of the elderly, increasing the likelihood of sudden expenses.

The recovery has also been uneven across the island.

Poverty is highest in rural areas at 11.5 per cent, compared with 9 per cent in other urban centres and 3 per cent in the Kingston metropolitan area, pointing to slower gains outside the capital.

Infrastructure gaps reinforce that divide. Only 59.3 per cent of rural households have access to safe drinking water, compared with 98.4 per cent in Kingston. Even where access exists, reliability remains an issue, with 51.7 per cent of households reporting water lock-offs.

Changes in household structure are also shaping financial resilience.

Average household size has declined to 2.6 people, while single-person households now account for 35.3 per cent of all households, reducing opportunities to share costs and increasing pressure on individual incomes.

Female-headed households remain larger on average and carry higher dependency ratios, meaning more non-earning members are supported by fewer earners.

While the data show a clear recovery from the economic shock of recent years, many Jamaicans remain close to the edge, with limited savings and little room to absorb new pressures.