Urban Poverty Rises and Deepens Significantly in Myanmar, Warns UNDP

New data reveals over 2.7 million people are now living in poverty in the city of Yangon as a combination of severe economic contraction, displacement, and insecurity converge.

June 3, 2025
Bird's-eye view of a vibrant market with multiple baskets of bananas and other fruits.
Photo: Adobe/Tapi Nguyen

A new analysis from the United Nations Development Programme (UNDP) highlights a critical and worsening urban poverty crisis in Myanmar's largest city. Once a centre of economic development, Yangon now has over 2.7 million residents living in poverty — a dramatic increase from 10% of the urban population in 2017 to 43% in 2023.

The findings are based on two recent UNDP studies, "Urban Poverty: Unpacking Yangon" and "Stitches of Struggle and Hope," which examine the impact of ongoing instability on household welfare and livelihoods in Yangon and its surrounding peri-urban areas.

 

"The erosion of social and economic resilience in Myanmar's urban centers is not just a matter of statistics," said Titon Mitra, UNDP Resident Representative in Myanmar. "It is lived daily by millions — in overcrowded settlements, with empty plates, difficulty in accessing health services, and for those few who have jobs, in long working hours under exploitative conditions. These findings reflect a structural unravelling that demands an urgent, multidimensional response."

 

The new data shows that:

 

  • Nearly one in two households in some peri-urban townships, such as Hlaingtharyar, now fall within the poorest category.
  • 45% of respondents reported recent medical needs, with most relying on costly private clinics due to a lack of confidence in public services.
  • One-third of children in the poorest households contribute to household income, many by collecting recyclables or dropping out of school.
  • Women face disproportionate burdens, with rising reports of gender-based violence and inadequate protections in factories and informal work.
  • Nearly 70% of garment workers reported experiencing high levels of stress or job insecurity, while 21% expressed a desire to migrate abroad.

 

The UNDP analysis also shows that, despite long working hours averaging 12 hours per day, wages in the garment sector remain far below the basic subsistence wage. A living wage should range from 11,000 MMK (approximately USD2.5) to 25,600 MMK (approximately USD5.8) per day, depending on household composition and working hours. This is far more than the current official minimum wage of 5,800 MMK (approximately USD1.3).

 

"Migrants, women, and youth are disproportionately affected, caught in a tightening grip of poverty, insecurity, and limited opportunity," added Tauhid Farid, project manager of the Urban Resilience Project. "Solutions — led by communities, backed by partnerships — is no longer a choice but a necessity."

 

UNDP calls for immediate, locally-driven actions to mitigate the crisis:

 

  • Expand skills training aligned with market demand, especially for peri-urban youth and women.
  • Improve access to healthcare with an emphasis on affordable, preventive care.
  • Provide targeted support to women-led microenterprises.
  • Scale financial literacy and mobile-based legal and rights awareness campaigns.
  • Promote wage reforms and better labour protections in export-oriented sectors.

 

"We know where the needs are. We know who is most vulnerable. We now need the support, financing, and coordination to act," said Titon Mitra. "What's at stake is not only economic recovery but the human dignity of millions."

 

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Media Contacts

In Yangon: elena.guadalupe.sosa@undp.org

In New York: raul.de.mora@undp.org 

 

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