WASHINGTON — The World Bank has warned that global progress in reducing extreme poverty has stalled, with approximately 811 million people, or nearly one in ten people worldwide, living on less than $3 a day, according to its 2026 report on poverty, prosperity, and the planet.
The Poverty, Prosperity, and Planet Report 2026: Jobs at the Center of Poverty Eradication indicates that decades of progress in reducing poverty have slowed significantly since 2019. It warns that the current decade could end without meaningful progress in the fight against extreme poverty.
Sub-Saharan Africa Remains a Major Poverty Hotspot
According to the report, more than half of the world’s population living in extreme poverty is concentrated in just nine economies. By 2030, an estimated 87% of people living in extreme poverty worldwide are expected to reside in Sub-Saharan Africa, fragile and conflict-affected situations, or both.
The World Bank warns that rapid population growth in these regions, combined with sluggish economic growth, could lead to an increase in the number of people living in extreme poverty by the end of the decade.
The crisis extends beyond extreme poverty. Approximately 3.7 billion people live on less than $8.30 a day, the poverty threshold used for upper-middle-income countries. The report stresses that escaping extreme poverty does not guarantee economic security, as many people remain vulnerable to falling back into poverty following economic crises or climate-related disasters.
Climate Change Increases Pressure on Vulnerable Populations
The report highlights that approximately 4.5 billion people are exposed to major climate hazards, while 1.5 billion face high levels of vulnerability due to inadequate basic infrastructure and social protection systems.
It also points to significant disparities in responsibility for emissions. Global greenhouse gas emissions reached 52.8 billion metric tons in 2024, driven primarily by upper-middle-income economies.
The World Bank emphasizes that the economic growth required to eradicate extreme poverty in low-income countries would add less than 5% to global emissions, suggesting that poverty reduction and environmental protection can be pursued together.
Jobs and Women's Employment at the Center of Solutions
The report places job creation and productivity improvements at the heart of efforts to reduce poverty. It finds that poor adults work at rates comparable to those of nonpoor adults, but work three to four fewer hours per week and support three times as many dependents.
The report also highlights the gender gap in labor market participation, noting that expanding women's employment opportunities could significantly reduce extreme poverty. Raising women's employment rates to a benchmark of 75% could reduce extreme poverty by approximately one-fifth.
In the poorest economies, moving from low-return agricultural activities into microenterprises or wage employment can provide a pathway out of poverty. However, sustaining progress ultimately depends on businesses' ability to create better-paying jobs and increase productivity.
The report concludes that renewed progress in tackling poverty requires expanding employment opportunities, increasing the earnings and productivity of poor workers, strengthening social protection, and addressing climate risks. These measures are essential to achieving more inclusive and sustainable development.
