Causal chain · Economics · Essay
Productive jobs → poverty reduction → shock resilience
- Productive jobs
- poverty reduction
- shock resilience
Core logic: Labour income reduces poverty, but informality and shocks can reverse gains.
Evidence in this chain
National poverty rate fell from 64.3% in 2001-02 to 21.9% in 2018-19. (2001-02 to 2018-19)World BankWorld Bank identifies rising non-agricultural labour income as principal driver of long-run poverty reduction. (2025)World BankBy 2018 about three-quarters of households earned some non-agricultural labour income. (2018)World BankMuch labour shift was into low-productivity construction, trade, transport and other services. (2025)World BankMore than 85% of employment is informal; over 95% among the poorest population in assessment. (2025)World BankPoverty began rising again from around 2020 amid COVID, inflation, floods and macro stress. (2020 onward)World BankWorld Bank estimates 2022 floods pushed another 13m Pakistanis into poverty. (2022)World BankWorld Bank analysis estimated ~60.4m Pakistanis below national poverty line in 2023-24. (2023-24)World BankRural poverty remains more than twice urban poverty. (2025)World Bank