Global Insights Which Economies Have the Highest Working Poverty Rates?

Global Insights Which Economies Have the Highest Working Poverty Rates?

Working poverty is a pressing global concern, with millions of people struggling to make ends meet. In some economies, this issue is more pronounced than others. This post explores which economies have the highest working poverty rates and what factors contribute to these challenges.

Introduction

Working poverty is a complex problem that affects millions of people worldwide. It's essential to understand the scope and causes of this issue to develop effective solutions. In this post, we'll examine the economies with the highest working poverty rates and explore the factors contributing to these challenges.

Insight #1 The Philippines Has One of the Highest Working Poverty Rates

According to the International Labour Organization (ILO), the Philippines has one of the highest working poverty rates globally. Approximately 1.9% of the working population lives in extreme poverty or below the poverty line of $2.15 per day, a significant decrease from 0.55% in 2023.

Moreover, around 8% of the working population lives in moderate poverty, with daily incomes of less than $3.65. This represents a decline from 22.4% in 2023 but still poses a substantial challenge. The ILO attributes this trend to factors such as limited job opportunities, low wages, and inadequate social protection.

Insight #2 Sub-Saharan Africa Has the Highest Regional Working Poverty Rate

Sub-Saharan Africa has the highest regional working poverty rate, with an estimated 55.1% of workers living in extreme or moderate poverty. Countries like Niger (63.4%), Burundi (62.5%), and the Democratic Republic of Congo (61.3%) are among the most affected.

Economic challenges, including limited infrastructure and poor governance, contribute to this high rate of working poverty. Additionally, many countries in Sub-Saharan Africa have not yet recovered from the impact of the COVID-19 pandemic.

Insight #3 Asia Has a Significant Share of Working Poor

While the Philippines has one of the highest working poverty rates globally, Asia as a whole has a substantial share of workers living in moderate poverty. Countries like India (24.1%), Indonesia (21.4%), and Pakistan (20.5%) have significant numbers of workers struggling to access jobs due to limited skills, education, or job security.

The region's rapid urbanization and industrialization have created new opportunities for employment, but many workers face challenges in accessing these opportunities.

Insight #4 Latin America Has a Rising Trend of Working Poverty

Latin America has traditionally had lower rates of working poverty than other regions. However, there is a rising trend in recent years. Countries like Bolivia (14.5%), Peru (13.6%), and Guatemala (12.9%) have seen an increase in the number of workers living in moderate poverty.

Economic instability, including inflation and currency fluctuations, has contributed to this trend. Additionally, limited social protection and labor market rigidities exacerbate the issue.

Insight #5 Gallant Efforts to Address Working Poverty

While working poverty remains a significant challenge globally, there are gallant efforts underway to address the issue. Governments, organizations, and individuals are working together to create more inclusive economies that provide opportunities for all workers.

Initiatives like decent work agendas, social protection programs, and microfinance schemes aim to empower workers with the skills, resources, and support they need to escape poverty.

Conclusion

Working poverty is a pressing global concern, affecting millions of people. While some economies have higher rates than others, there are gallant efforts underway to address the issue. By understanding the factors contributing to working poverty and supporting initiatives that promote decent work and social protection, we can work towards creating more inclusive economies for all.

Keywords Working poverty, extreme poverty, moderate poverty, International Labour Organization (ILO), sub-Saharan Africa, Asia, Latin America, decent work agendas, social protection programs, microfinance schemes.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.