Yet, three in four people in low-income countries still lack coverage
WASHINGTON, April 7, 2025 -A new World Bank report reveals both the progress and the ongoing challenges in strengthening social protection and labor systems across low- and middle-income countries. Drawing from administrative and household surveys, it shows that in the past decade, and particularly in response to the COVID-19 pandemic, social protection coverage reached 4.7 billion people in low- and middle-income countries, the highest point in history.
However, three out of four people in low-income countries have no access to social services, according to The State of Social Protection Report 2025: The 2 Billion-Person Challenge. Despite significant gains in expanding social protection systems over the past decade, a staggering two billion people remain without adequate coverage. It will take 18 years to achieve full coverage for those living in extreme poverty at current growth rates.
Social protection goes well beyond direct cash or in-kind support; it includes policies and programs that bridge skill, financial and information gaps. The three pillars of social protection-social assistance, social insurance, and labor market programs-play a crucial role in helping households and workers manage crises, escape poverty, navigate transitions, and seize job opportunities.
"Well-designed social protection programs empower people, helping them move out of poverty and become self-reliant. They prevent pulling children out of school or selling productive assets when shocks occur. They also help women start small businesses, or young people acquire the skills needed to secure their first job," said Iffath Sharif, Global Director for Social Protection and Labor at the World Bank. "These programs help people thrive, and that in turn benefits their communities and their economies."
During the COVID-19 pandemic, emergency social protection responses reached 1.7 billion people in developing countries, demonstrating the importance of shock-responsive systems. Countries with robust delivery infrastructure prior to the pandemic responded more effectively, emphasizing the need for proactive investment.
The report finds, however, that social protection benefits are unevenly distributed. Across a sample of 27 countries, women receive, on average, 81 cents for every $1 received by men. Unreached populations are disproportionately concentrated in fragile, conflict-affected, and hunger-prone regions of Africa, South Asia, and the Middle East.
Social services and labor programs can significantly enhance labor opportunities for the poor, the report shows. Programs like public works, unemployment insurance and job placement services can greatly improve incomes for the poor. However, their potential is often underutilized due to inadequate funding and a lack of tailored design.
The report outlines three policy actions governments can take, tailored to each country's context, capacity, and fiscal restraints:
Expand coverage by investing limited resources, particularly in low-income countries, in infrastructure such as databases, digital payments, and case management systems to effectively support those in need.
Tailor support to help people, especially in middle-income countries, move beyond survival toward self-reliance.
Build shock-responsive systems by strengthening data, payments, and early warning tools to provide timely support and employment stability during crises.
To help fund these recommendations, the report notes that better use of existing resources could make a big difference. For instance, redirecting cash transfers from the wealthy to the poor could cover nearly half the cost of providing social protection to the bottom 20%.
In a world undergoing rapid change, the cost of inaction will not only be higher than the cost of investment-it will be measured in lost opportunities, deeper inequalities, and diminished resilience for generations to come.
To download full report: State of Social Protection Report 2025: The 2 Billion-Person Challenge.
For more data, please visit the World Bank's Atlas of Social Protection Indicators of Resilience and Equity (ASPIRE)
