Over the past 30 years, there has been an almost constant reduction in the poverty rate worldwide. Whereas nearly 38 percent of the world's population lived on less than 2.15 U.S. dollars in terms of 2017 Purchasing Power Parity (PPP) in 1990, this had fallen to 8.7 percent in 2022. This is despite the fact that the world's population was growing over the same period. However, there was a small increase in the poverty rate during the COVID-19 pandemic in 2020 and 2021, when thousands of people became unemployed overnight. Moreover, rising cost of living in the aftermath of the pandemic and spurred by the Russian invasion of Ukraine in 2022 meant that many people were struggling to make ends meet. Poverty is a regional problem Poverty can be measured in relative and absolute terms. Absolute poverty concerns basic human needs such as food, clothing, shelter, and clean drinking water, whereas relative poverty looks at whether people in different countries can afford a certain living standard. Most countries that have a high percentage of their population living in absolute poverty, meaning that they are poor compared to international standards, are regionally concentrated. African countries are most represented among the countries in which poverty prevails the most. In terms of numbers, Sub-Saharan Africa and South Asia have the most people living in poverty worldwide. Inequality on the rise How wealth, or the lack thereof, is distributed within the global population and even within countries is very unequal. In 2022, the richest one percent of the world owned almost half of the global wealth, while the poorest 50 percent owned less than two percent in the same year. Within regions, Latin America had the most unequal distribution of wealth but this phenomenon is present in all world regions.

Changing lifestyles and economic headwinds have posed insurmountable challenges to after-school program providers. The shift toward remote work has allowed many parents to be home when their children finish school, decreasing the need for external care. Inflation has also reduced disposable incomes, forcing families to cut non-essential expenses like after-school programs. Despite a period of declining unemployment rates, an uptick in unemployment by 2024 is bringing back lessened demand as jobless parents can care for their children themselves. Still, solid federal support for after-school programs has helped slow providers' descent. Revenue has been dropping at a CAGR of 3.3% to an estimated $20.9 billion over the five years through 2024, including an expected 1.3% dip in 2024 alone. Parents' evolving lifestyles and financial constraints have significantly impacted after-school programs' profit. Remote and hybrid work has cut parents' reliance on after-school care. Competition is heating up as providers seek to capture evaporating demand. Intense price- and quality-based competition has limited providers' ability to adjust fees to cover rising costs, forcing many providers' profit near zero. To cope, providers have restructured to hire part-time workers, who don't require benefits. While government support through federal programs like the 21st Century Community Learning Centers (CCLC) has provided some aid, many providers continue to struggle. After-school program providers are expected to see some relief moving forward. Disposable incomes are set to climb as inflation subsides, allowing parents to afford additional childcare services. An increase in high-earning households will support demand from after-school program providers' top market. However, rising unemployment and continued remote work are expected to keep demand subdued. Providers will need to remain competitive by offering better services and potentially lower fees, muting growth further. While federal funding remains crucial, programs must diversify their financial sources to ensure long-term viability amid changing demographic and economic landscapes. Revenue is set to swell at a CAGR of 0.5% to an estimated $21.4 billion through the end of 2029.