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In 2015, the median purchasing power of Saba’s local population improved by 2.2 percent. This was the lowest increase since 2012, when measurement started. Both people in employment and benefit recipients saw a median increase of 2.2 percent. People up to the age of 40 saw the most substantial increase: 4.6 percent.
In each year since 2012, purchasing power the population on Saba has had positive purchasing power. However, the improvement declined from a 4.6 percent increase in 2012 to a minor 2.2 percent increase in 2015. The share of people that were indeed confronted with a decline in purchasing power remained virtually stable. In 2015, around 36 percent of the population was negatively affected.
Improved spending power for people in work
In 2015, purchasing power improved by 2.8 percent for the employed, i.e. people with income from employment or self-employment in 2014 and 2015. Benefit recipients also saw an increase (2.2 percent) in 2015. Due to a lack of observations, there are no reliable figures for this group over the years 2012-2014.
Largest increase for households with children
For both single and multi-person households, the median purchasing power increase was 2.2 percent. Households with (young) children saw the most positive effects. One-parent households gained 4.1 percent while couples with children saw purchasing power improve by 3.0 percent. A relatively minor increase was recorded for couples without children with 1.5 percent.
Young benefit more than older generation
The purchasing power increase was (more than) twice as high among the youngest age group (people under the age of 40) compared to the older age group. People up to the age of 40 are still moving up the career ladder. As they gain more work experience and find better paid jobs, their wages increase. The median purchasing power of this group rose by 4.6 percent. For people in the age category 40 to 59 years and people aged 60 or older, purchasing power grew less rapidly at 2.3 and 2.2 percent respectively. In 2015, the increase in the older age groups is similar to the rise in real income from the AOV benefit. Spending power decreased for 30 percent in this group.
Highest income group benefited most
In 2015, purchasing power increased for all income groups on Saba but most substantially for persons in the highest income group. The median spending power of this group rose by 3.7 percent. For nearly three out of ten households in the highest income group, there were negative effects, however.
RCN