A new analysis argues that the structure of global supply chains contributes to persistent worker poverty. It estimates that about 1 in 5 people in jobs are living in poverty worldwide. The report attributes this to how value is divided across supply chains: companies and intermediaries capture a larger share of the value, while suppliers and especially workers receive a smaller portion.
Using three case studies spanning sectors such as agriculture and tourism, the analysis describes how employment is embedded in systems that keep wages low even as production and related services generate profits for international markets. Across the sectors examined, workers typically face weak bargaining power and limited ability to capture gains from the value created within the chain.
The authors also frame the supply-chain problem as one that can be addressed through changes that alter how value and costs are distributed among firms and workers. While the sources emphasize the distributional imbalance as the central issue, they present the case studies as evidence that the pattern appears across different industries rather than being confined to a single country or sector.
