Highlights of the First Semester of 2021 Official Poverty Statistics in La Union

Poverty and Food Thresholds

In the first semester of 2021, no less than PhP11,510, on the average, was needed to meet both basic food and non-food needs of a family of five in a month in the province.  This amount is the poverty threshold.  This is 26.9 percent higher compared with the poverty threshold in first semester 2018 at   PhP9,068.  (Table 1)

Moreover, a family of five in La Union needed no less than PhP8,045, on the average, to meet the family’s basic food needs for a month in the first semester of 2021.  This amount is the food threshold.  This is 24.6 percent higher than the food threshold in first semester 2018 at PhP6,455.  (Table 2)

Poverty among Filipino families and individuals

The poverty incidence among Filipino families in La Union in first semester of 2021 was estimated at   10.7 percent.  This is defined as the proportion of families with per capita income less than the per capita poverty threshold to the total number of families. This was estimated at 3.7 percent in first semester of 2018.  At 0.10 level of significance, a significant increase of 7.0 percentage points from first semester of 2018 to first semester of 2021 was observed in the poverty incidence among Filipino families in the province.  

The 10.7 percent poverty incidence among Filipino families in first semester of 2021 translates to 21.5 thousand families in the province who lived below the poverty threshold.  In first semester of 2018, the magnitude of poor families in the province was recorded at 7.1 thousand.  (Table 3)

On the other hand, the poverty incidence among Filipino individuals in La Union in the first semester of 2021 was estimated at 13.9 percent.    This is referred to as the proportion of the population living below the poverty line to the total population.  This was estimated at 5.2   percent in first semester of 2018.  At 0.10 level of significance, a significant increase of 8.7 percentage points was observed in the poverty incidence among Filipino individuals in the province.

The 13.9 percent poverty incidence translates to 116.0 thousand poor Filipinos in the province, an increase of about 73.6 thousand Filipinos from first semester of 2018.  (Table 4).

Meanwhile, the subsistence incidence among Filipino families in La Union in first semester of 2021was estimated at 2.8 percent. This refers to the proportion of Filipino families whose income fall below the food threshold. This was estimated at 0.6 percent in first semester 2018.   At 0.10 level of significance, a significant increase of 2.2 percentage points from first semester 2018 was observed in the subsistence incidence among families in the province.

As to magnitude of food poor families in the province, there were about 5.6 thousand food poor families estimated in first semester of 2021, an increase of about 4.5  thousand food poor families from first semester of 2018.  (Table 5)

On the other hand, the subsistence incidence among Filipino individuals or the proportion of Filipino individuals in La Union whose income fall below the food threshold was estimated at 3.9 percent in first semester of 2021.   At 0.10 level of significance, a significant increase of 2.9 percentage points was recorded from first semester of 2018 subsistence incidence among Filipino individuals in the province.  

The 3.9 percent subsistence incidence translates to about 32.3 thousand Filipino individuals in the province in first semester of 2021 who did not meet the basic food needs.  This posted an increase of about 23.9 thousand food poor individuals from first semester of 2018.  (Table 6)

In first semester of 2021, on the average, incomes of poor families in La Union were short by 20.0 percent of the poverty threshold. This means that in order to move out of poverty, a family of five members needed an average additional monthly income of about PhP2,302.   Poverty gap in the province in first semester of 2021 was estimated at 2.1 percent while severity of poverty was estimated at 0.7 percent.  (Table 7)

The income gap, poverty gap and severity of poverty in the province increased from first semester of 2018 to first semester of 2021.

The PSA does not encourage ranking of provinces based on point estimate of poverty incidence.  Instead, it generates and releases clusters due to overlapping confidence intervals of poverty incidences among families among provinces. 

Cluster 1 indicates the bottom (poor) provinces or provinces with high poverty incidence while Cluster 5 indicates the top (least poor) provinces.    The province of La Union remained in the least poor cluster of provinces (Cluster 5) in first semester of 2021.

TECHNICAL NOTES

Food threshold - the minimum income required for a family/individual to meet the basic food needs, which satisfies the nutritional requirements set by the Food and Nutrition Research Institute (FNRI) to ensure that one remains economically and socially productive. 

Income Gap - the average income shortfall, expressed in proportion to the poverty threshold of families/individuals with income below the poverty threshold. 

Magnitude of the Food Poor (Subsistence Poor) - refers to the number of families/individuals who are food poor/subsistence poor

Magnitude of the Poor - refers to the number of families/individual who are income poor

Poverty gap- the total income shortfall (expressed in proportion to the poverty threshold) of families/individuals with income below the poverty threshold, divided by the total number of families/individuals.

Poverty incidence - the proportion of families/individuals with per capita income less than the per capita poverty threshold to the total number of families/individuals.

Poverty threshold - the minimum income required for a family/individual to meet the basic food and non-food needs.   

• Basic food requirements are currently based on 100% adequacy for the Recommended Energy and Nutrient Intake (RENI) for protein and energy equivalent to an average of 2000 kilocalories per capita, and 80% adequacy for other nutrients. On the other hand, basic non-food requirement includes: 1) clothing and footwear; 2) fuel, light, and water; 3) housing maintenance and other minor repairs; 4) rental of occupied dwelling units; 5) medical care; 6) education; 7) transportation and communication; 8) non-durable furnishing; 9) household operations; and 10) personal care and  effects.

Severity of poverty - the total of the squared income shortfall (expressed in proportion to the poverty threshold) of families/individuals with income below the poverty threshold, divided by the total number of families/individuals.   This is a poverty measure that is sensitive to income distribution among the poor. The worse this distribution is, the more severe poverty is.

Subsistence incidence - the proportion of families/individuals with per capita income less than the per capita food threshold to the total number of families/individuals.

SGD. DANITES E. TEÑIDO, Ph.D.
Chief Statistical Specialist