Summary This report analyzes social and economic factors such as the risk of poverty, the employment rate and the population who have completed at least upper secondary education. In this report you can find a summary of data, descriptive statistics, correlation and regression analyses, which show that poverty has a small negative relationship with the employment rate and a negative relationship with education. Therefore, this means that if countries increased the employment rate and the number of people finishing secondary education, they would be able to reduce the level of poverty in the countries. Introduction One of the contemporary challenges facing policymakers is the incidence and spatial concentration of poverty. The multiple dimensions of poverty include: employment levels, education, incidence of poor health, poverty levels and macroeconomic conditions. In this report we will look at two of them: employment rate and education to find out whether countries can reduce the level of poverty by increasing the employment rate and increasing the number of people finishing at least upper secondary education. Furthermore, we will find out what is more important to increase the employment rate or increase the number of people finishing secondary education to reduce the level of poverty in countries. To find out all these things we will summarize the information, using descriptive statistics, we will test the relationship between the variables using correlation and regression which will answer our questions. Sources All data for this report was taken from the leading provider of high-quality statistics on Europe - Eurostat. Eurostat is the statistical office of the European Union based in Luxembourg. Its task is to provide the European Union with Europe-wide statistics that allow comparisons between countries and regions (Eurostat). People at risk of poverty or social exclusion: measures people living in conditions severely constrained by lack of resources or a person whose household income per unit of consumption is less than 60% of the median income considered to be living at a poverty level ( Statistics 2013). However, there are a couple of problems with this measure. First, these measures do not identify some groups, for example people living in institutions, the homeless or migrants. Secondly, it is difficult to make comparisons between countries based on deprivation indicators; for example, having a warm coat may be necessary in a country where it is cold, but is not necessary in a country with a hot climate (Eapn). The data refers to 2011. The employment rate is the number of individuals aged between 20 and 64 who are employed relative to the population. However, there are a couple of problems with this measure.