Slower poverty reduction warns World Bank – youth and women need more jobs

Bangladesh made significant progress in reducing poverty between 2010 and 2022, lifting around 25 million people out of poverty and another 9 million out of extreme poverty. Living standards improved, and access to basic services such as electricity, education, and sanitation became more widespread.

However, since 2016, the pace of poverty reduction has slowed, and economic growth has become less inclusive. According to the Bangladesh Poverty and Equity Assessment 2025, extreme poverty fell from 12.2% to 5.6% between 2010 and 2022, while moderate poverty declined from 37.1% to 18.7%.

Despite these gains, nearly 62 million people—roughly one-third of the population—remain vulnerable to falling back into poverty due to illness, natural disasters, or other shocks.

Post-2016, the pattern of economic growth in Bangladesh became less inclusive, with higher income growth benefiting wealthier families, leading to rising income inequality. Rural areas led the decline in poverty, with agriculture serving as a key driver. Urban areas, however, saw much slower poverty reduction. By 2022, one in four poor Bangladeshis lived in a city.

Jean Pesme, World Bank Division Director for Bangladesh and Bhutan, said: “Bangladesh has long been celebrated for its success in reducing poverty. But with a changing global context, climate vulnerabilities, and slower job creation, labour incomes have weakened.”

He added: “Business-as-usual approaches will not accelerate poverty reduction. The fastest route to reducing poverty and ensuring people’s dignity is through job creation, especially for youth, women, and vulnerable populations. A pro-poor, climate-resilient, and job-centric strategy is essential for inclusive and sustainable growth.”

Job creation has stagnated in the manufacturing sector and shifted to less productive sectors, disproportionately affecting women and youth. One in five young women remains unemployed, and one in four educated young women is without a job. In urban areas outside Dhaka, job creation slowed, and labour force participation fell, particularly among women. Half of all youth aged 15–29 are employed in low-paying jobs, highlighting a skill mismatch.