Global Extreme Poverty Rate Among Workers Shows Persistent Decline Over Three Decades

Economics & Macro

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Erlina Fury Santika 25/01/2025 18:43 WIB

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ILO statistics show a decreasing proportion of working poor over at least the last three decades. The ILO calls this a sign of progress.

Estimated Proportion of Global Workers by Poverty Classification (1994-2024)

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Global Extreme Poverty Rate Among Workers Shows Persistent Decline Over Three Decades

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Estimated Proportion of Global Workers by Poverty Classification (1994-2024)

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International Labour Organization (ILO) statistics show a decrease in the number of global workers living in extreme poverty over the past three decades.

There are three worker classes based on ILO poverty classification. First, extremely poor workers with income less than US$2.15 per day, or approximately Rp34,000 (assuming an exchange rate of Rp16,170 per US$).

Second, moderately poor workers with income between US$2.15 and US$3.65, or Rp34,000-Rp59,000 per day. Third, non-poor workers with income exceeding US$3.65, or Rp59,000 per day.

In 1994, the estimated proportion of the global poor worker class was very high, reaching 34% of the total active workforce worldwide. This figure then decreased significantly in 2004 to 22%.

The number of extremely poor workers fell further to 9% in 2014 and to an estimated 7% in 2024.

This decrease contrasts with the increasing proportion of non-poor workers. Specifically, this proportion was 45% in 1994, rising to 57% in 2004, 75% in 2014, and finally 83% in 2024.

However, the proportion of moderately poor workers remained stagnant between 1994 and 2004, as shown in the graph.

The ILO assesses that the reduction in extremely poor workers reflects global progress in improving living standards.

"At the same time, more workers are earning above US$3.65 per day, marking a positive shift in income distribution," wrote the ILO, as quoted on Saturday (25/1/2025).

However, the ILO notes that this progress is still uneven, with extreme poverty persisting in 2024. This is particularly prominent in low-income regions.

"This highlights the need for targeted policies to ensure that no [worker] is left behind," said the ILO.

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Global Extreme Poverty Rate Among Workers Shows Persistent Decline Over Three Decades

Global Extreme Poverty Rate Among Workers Shows Persistent Decline Over Three Decades

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Majority of Indonesian Migrant Workers Depart at a Young Age

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Global Extreme Poverty Rate Among Workers Shows Persistent Decline Over Three Decades

Global Extreme Poverty Rate Among Workers Shows Persistent Decline Over Three Decades

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Jakarta's Poverty Rate 2025, Thousand Islands Highest

Public Rates Central Government's Economic Performance as Poor (September 2025)

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