Uzbekistan has recorded a sharp reduction in poverty as rising employment and wages improve household incomes, according to the World Bank’s latest Poverty and Equity Assessment. The report also highlights a structural challenge for the economy: the next stage of growth will depend not only on creating more jobs, but on making them more productive, formal and accessible across the regions.
Employment drives poverty reduction
Between 2021 and 2025, Uzbekistan’s poverty rate under the national poverty line fell from 17% to 5.8%, lifting approximately 3.7 million people above the threshold. The World Bank describes this as one of the strongest poverty-reduction results achieved by a middle-income country in recent years. Rising wage employment and higher earnings were the main forces behind the improvement. The share of the population classified as middle class also increased from 37% to more than 72%. [1]
Job quality remains a pressure point
The employment expansion, however, has not yet translated into a broad-based productivity upgrade. Around two-thirds of new jobs are being created in construction and trade, while approximately 85% are informal. At the same time, real labour productivity has begun to decline, limiting the potential for workers to move into more stable and better-paid positions.
“Therefore, it is important not only to increase the number of jobs, but also to improve their quality. This requires developing the private sector, supporting the creation of jobs with high labour productivity and formal employment, and expanding employment opportunities beyond Tashkent,” the World Bank said in its press release.
Uneven regional gains leave households vulnerable
The report notes that rising prosperity is distributed unevenly across Uzbekistan. Higher-paying jobs and improved living standards remain concentrated in Tashkent and several other urban centres, while many households elsewhere continue to face weaker access to economic opportunities. Despite the rapid expansion of the middle class, roughly one in five residents remains vulnerable to falling back into poverty. [2]
For international companies in furniture, construction, interior and exterior manufacturing, trade, design and architecture, the findings point to both opportunity and risk. Growing incomes and an expanding middle class can support demand for housing, renovation, furnishings and commercial spaces, while the concentration of purchasing power in major cities may favour an initial focus on urban markets. At the same time, companies entering Uzbekistan will need to assess regional disparities, workforce informality and the availability of qualified labour when planning production, retail, logistics or service operations.
