World Bank says more and better jobs are vital to reverse stalled poverty progress

More than half of people in extreme poverty live in just nine economies, and by 2030 an estimated 87 percent will live in Sub-Saharan Africa or fragile and conflict-affected settings.

Global progress in reducing extreme poverty has stalled, and without faster growth in income per person, the number of people living in extreme poverty could be higher in 2030 than it is today. The World Bank Group's Poverty, Prosperity, and Planet Report 2026 estimates that about 811 million people, one in ten worldwide, will live on less than $3 a day in 2026, a share that has barely changed since the pandemic. Bringing extreme poverty down to 3 percent by 2050 would require average annual growth in income per person of about 4 percent, twice the pace recorded over the previous 25 years.

More than half of people in extreme poverty live in just nine economies, and by 2030 an estimated 87 percent will live in Sub-Saharan Africa or fragile and conflict-affected settings. Nearly 3.7 billion people, close to half the world's population, live on less than $8.30 a day, a figure that has remained stagnant since 1990.

More jobs can open a path out of poverty

The two poverty lines reflect different income contexts: $3.00 a day is based on standards used in low-income countries, and $8.30 is the standard for upper-middle-income countries. Drawing on new data from more than 130 economies, the 2026 report examines how employment and earnings can help lift people out of poverty.

World Bank Group Vice President for Prosperity Pablo Saavedra said slow growth in the countries with the highest poverty has held back job creation and narrowed opportunities for millions. "We need to accelerate growth and enable the creation of more and better jobs as a key pathway out of poverty," he said.

Better access to work and higher earnings

The report sets out two priorities that reinforce each other: closing gaps in employment and improving what poor workers earn. Raising employment among working-age adults in poor households to 75 percent, possible through closing the gender gap in employment, could reduce global extreme poverty by roughly one-fifth.

Poor workers are often concentrated in low-return activities such as smallholder farming, and they tend to have less education. Raising their education to the average level of people above the extreme poverty line could increase predicted earnings by about 40 percent and cut extreme poverty nearly in half; moving workers into wage jobs or out of agriculture could reduce poverty by about one-fifth.

Country priorities can support farmers, businesses and women

The right mix of policies will differ by country, with opportunities to help farmers and small businesses earn more, expand access to better jobs and bring more women into the workforce. More and better jobs can provide a route out of poverty, strengthen household economic security and support a growing middle class.

"Even under challenging circumstances, progress is possible for improving lives and moving more people out of poverty," said Michael Kremer, World Bank Group Chief Economist and Senior Vice President for Development Economics. He said the report offers a framework for understanding the challenges and identifying approaches to reduce poverty.