Why work no longer guarantees a decent life — we explain in simple words

When Full-Time Work Still Means Poverty Work no longer guarantees a normal life: nearly half of those officially poor in Russia are employed. Half of Russians have zero savings, and one in four can afford only food. Paydays vanish within days into credit payments, utilities, mortgages, and groceries. Wages appear to rise on paper, yet financial stability remains out of reach.

The Real Face of the Working Poor The working poor are teachers, nurses, cashiers, scientists, young IT workers, and a senior librarian with decades of service. A working-poor person labors full time yet cannot cover basics like food, housing, healthcare, and education. They cluster in education, hospitality, leisure, and administration; in the U.S., service workers face similar risk, about one in twelve. Education sharply lowers risk: 1.4% with a bachelor’s degree versus 12.6% for those without high school. Many are single breadwinners raising children.

The Average Wage Illusion Average wages mislead when a few high earners skew the number. In a team where one earns 500,000 and four earn 50,000, the average is 140,000 but the median—what most feel—is 50,000. Since 1991, averages have climbed, yet the median tells a less rosy story. Remember the median when judging whether pay growth translates into real life.

Poverty Lines That Measure Survival, Not Life Many working households live in emergency mode: an unexpected dental bill or a broken fridge pushes them into debt. The state’s subsistence minimum defines who qualifies for aid—17,700 rubles per capita in 2025, 19,300 for working-age adults. After 2021 it’s pegged to 44% of the national median wage rather than a priced “consumer basket.” Regional gaps are stark: about 15,000 in Tatarstan versus roughly 46,000 in Chukotka. This benchmark measures survival and allocates benefits, not a decent standard of living, so many “not poor” still barely cope.

Low-Quality Jobs Undervalue Essential Work Low-quality jobs dominate the labor market, keeping pay depressed even for skilled roles. A senior librarian with 20 years of service earns 8,300 rubles, despite doing valuable, qualified work. Loving the job and performing well does not prevent life on the edge of poverty. The system rewards indispensable service with wages that force continual trade-offs.

Precarious Gigs Replace Stable Employment The gig economy expands off-staff, unstable work for couriers, taxi drivers, and freelancers. Irregular hours, shifting demand, and weak protections create a precariat with volatile income. Short-term contracts replace security with risk, turning work into a series of temporary bets. That instability undermines any path out of poverty.

Family Burden Outpaces Two Incomes Rising prices and inflation mean one income rarely supports a family, and even two often fall short. One couple earns 23,000 rubles together while supporting two children and three ailing retired parents, choosing between medicine, kids’ shoes, and utility debt. The old model of a single breadwinner has vanished, but the dependency load has grown heavier. Household responsibilities magnify low pay into chronic hardship.

Personal Inflation Eats Working-Class Budgets Official inflation tracks a 566-item consumer basket with weights, such as food at 38% in 2024. That average hides personal baskets: rent jumps or food spikes hit some far harder than an 8% headline rate. Basics rise fastest for the poor; potatoes alone surged 92% in the past year. When nearly all income goes to food, utilities, and essentials, personal inflation outpaces official metrics.

A Global Problem Demanding Structural Fixes Under globalization and individualization, work no longer reliably shields against poverty. In 2022 the U.S. counted 6.5 million working poor, while the EU averages 8–10% at risk, from 3.5% in Finland to nearly 19% in Romania due to unstable contracts and low minimums versus strong unions. Raising minimum wages rarely cures poverty, since many recipients aren’t poor and sudden hikes can shift pay into envelopes or trigger layoffs. Real fixes target low labor productivity and heavy dependency loads by creating decent, fairly paid jobs and supporting families with children. Without change, debt, burnout, and disillusionment with work deepen, as a new generation refuses low-paid grind.