Poverty

When people hear the word poverty, they often imagine someone who does not have enough food to eat. This image reflects the most visible and extreme form of poverty, where survival itself becomes a daily struggle.

Even today, we see people living on pavements, in slums, or in temporary shelters, trying to secure proper meals, safe housing, and basic healthcare. Many migrate to cities in search of work, hoping to improve their lives, but end up living in uncertain and difficult conditions because stable income and affordable housing remain out of reach.

But poverty does not exist only in this visible form.

There are also millions of people who work every day, who earn, and who may even be educated, yet they live without financial security. Their income may help them manage present needs, but it does not protect them from future uncertainties. A sudden job loss, illness, or rising cost of living can quickly push them into hardship.

Over time, the meaning of basic needs has also changed. Earlier, survival depended mainly on food, shelter, and clothing. Today, a decent life also requires access to education, healthcare, sanitation, electricity, and essential household facilities that ensure safe and healthy living. In modern urban life, even basic appliances such as fans, lighting, and access to healthcare protection like insurance play an important role in maintaining stability and protecting families from sudden hardship. Without these, people may survive, but they remain economically vulnerable.

Poverty, therefore, is not only about hunger. It is about the lack of stability, lack of opportunity, and lack of economic security needed to live with dignity and confidence.

To truly understand poverty, we must look beyond what is immediately visible and examine the deeper factors that prevent people from achieving financial stability.

Causes of Poverty

Income is the most important factor used to classify people as poor, middle class or rich. This is because income decides the opportunities a family can provide to its children. For example, it affects whether a child can go to school, and if yes, whether they can afford a government school or a private school, and even which private school they can choose based on fees. Income also plays a major role in healthcare. It determines whether a person can afford medical treatment during emergencies and whether they can invest in health insurance for better protection. When income is low and irregular, people become more vulnerable and insecure. Unfortunately, money plays a major role in deciding a person’s social and economic condition. If such people face an unexpected problem like illness, job loss, or any emergency, their situation becomes even worse and their quality of life further declines.

Poverty is not caused by a single factor. It develops due to a combination of economic, social, and structural conditions that limit people's ability to earn stable income and improve their standard of living. Some of the major causes include irregular employment, lack of quality education, lack of economic skills, and inflation.

1. Irregular Employment :

Irregular employment does not affect only one type of worker. It exists across both traditional and modern sectors. While the nature of work may differ—from manual labour to digital professions—the underlying issue remains the same: lack of stable, predictable, and secure income. This income instability limits financial security and increases the risk of poverty.

To understand this better, irregular employment can be seen across several major categories.

Informal and Low-Income Traditional Sectors

This includes workers such as agricultural labourers, construction workers, factory helpers, street vendors, domestic workers, and daily wage earners.

These jobs often:

• Do not provide fixed monthly income
• Depend on seasonal demand, weather, or market conditions
• Do not provide social security, insurance, or pension
• Offer limited opportunity for long-term financial growth

Even though these jobs are essential to the functioning of the economy, they are often low-paying and unstable. Workers may find employment one day and remain unemployed the next. This prevents consistent savings and makes families vulnerable to economic shocks.

This form of irregular employment has existed for decades and continues to affect a large portion of the workforce in developing and emerging economies.

Modern Gig Economy and Digital-Based Employment

With the growth of technology, new forms of employment have emerged, including freelancers, remote workers, content creators, influencers, ride-share drivers, and platform-based service providers.

These roles have created new economic opportunities and have enabled many individuals to earn independently. Some workers have achieved rapid financial growth and economic mobility through digital platforms.

However, this sector also has inherent instability:

• Income depends on demand, audience engagement, or project availability
• There is no guaranteed monthly salary
• Earnings may fluctuate significantly over time
• There is often no job security, health benefits, or retirement protection

Most workers in this sector experience variable income rather than consistent financial stability. Success is possible, but it is unevenly distributed, and many workers remain financially uncertain.

This demonstrates that irregular employment is not limited to traditional labour sectors—it also exists in modern, skilled, and technology-driven professions.

Educated Workforce Facing Employment Instability

An important modern reality is that irregular employment is no longer limited to uneducated workers. Many educated individuals, including degree holders, face difficulty in securing stable and secure employment.

Formal education alone does not always guarantee stable livelihood opportunities. The rapid pace of economic and technological change has increased demand for specialized skills, practical experience, and adaptability.

As a result:

• Some educated individuals remain unemployed
• Others work in jobs below their qualification level
• Some rely on temporary, contract-based, or unstable employment

This creates a situation where education improves opportunity, but does not always guarantee economic security.

This gap between education and stable employment has become one of the defining employment challenges of the modern economy.

Government Employment: Stable but Limited Access

Government jobs are considered one of the most stable forms of employment because they provide:

• Fixed and predictable income
• Job security
• Pension and retirement benefits
• Healthcare and social protection

However, government jobs represent only a small portion of total employment. The number of applicants for government positions is extremely high compared to the number of available positions.

This creates intense competition, and only a small percentage of the workforce can access this level of employment security.

As a result, the majority of the workforce depends on private, informal, or contract-based employment, where income stability is less certain.

2. Lack of Quality and Real-World Relevant Education

Education has long been seen as the path to a better life and a way to escape poverty. Students spend years in schools and colleges, studying subjects, passing examinations, and earning degrees with the hope that education will secure their future. However, for many, the reality after education is very different from what they were prepared for.

A significant gap exists between what students learn and what the real world demands. Many students are taught theory for years, but receive limited exposure to practical skills, real-world problem solving, or the changing needs of modern industries. When they enter the job market, they often find themselves unprepared for the expectations of employers.

Quality education is not just about literacy or completing formal schooling. It must also prepare individuals to adapt, communicate, and function confidently in real economic environments. Skills such as communication, confidence, critical thinking, adaptability, and practical application of knowledge play a crucial role in securing stable employment.

In today’s fast-changing economy, industries evolve rapidly, and new technologies and professions emerge continuously. Education systems that do not adapt to these changes leave students with qualifications that may not fully match current opportunities. This creates a situation where even educated individuals struggle to find stable and meaningful employment.

This gap between education and employability contributes to income instability. Without relevant skills and preparation, individuals may face unemployment, underemployment, or unstable work conditions, which increases their financial vulnerability.

Quality education, therefore, must go beyond theoretical knowledge. It should help individuals understand real-world systems, develop practical and social skills, and prepare them to navigate economic challenges with confidence and capability.

When education fails to provide this foundation, it restricts economic opportunities, weakens financial security, and becomes an indirect but powerful contributor to poverty.

3. Lack of economic skills:

For many families, education is seen as hope. Parents make sacrifices so their children can study, believing that education will open doors to a better and more secure future. Children grow up hearing that if they study well, they will be able to stand on their own feet and support their families.

For them, education is not just learning. It is seen as a turning point. A way to move beyond uncertainty and build a stable life.

And to some extent, this belief is true. Skills do open doors.

But for many, the reality after gaining education and skills is far more complex than expected.

In today’s world, earning a stable income depends not only on having knowledge, but on having the right kind of economic skills. These include practical abilities such as using technology, understanding digital systems, communicating effectively, solving real problems, and adapting to changing work environments. These skills allow individuals to participate meaningfully in the economy.

However, the opportunity to develop these skills is not equal for everyone.

For children growing up in economically secure households, access to learning tools, internet, guidance, and exposure is often readily available. They can explore their interests, learn new skills, and understand which abilities are valued in the modern economy. But for many economically weaker families, even basic access to digital tools such as a personal mobile device, laptop, or reliable internet connection remains limited.

The internet has made learning more accessible than ever before. A single device can provide access to tutorials, courses, and knowledge from across the world. For many, free online resources have become an important pathway for skill development. Yet, access alone does not remove all barriers. Many individuals rely entirely on free resources, while structured programs, mentorship, and higher-quality learning opportunities often remain financially out of reach.

Beyond access to tools, the surrounding environment also shapes opportunity. When individuals grow up in conditions where the primary focus is on meeting immediate needs, there is often limited exposure to different career paths or evolving industry demands. Without guidance or awareness, it becomes difficult to align personal interests with practical economic opportunities.

Even for those who manage to develop skills, another challenge often emerges. Opportunities are not distributed equally. Many skilled individuals struggle to find the right platform where their abilities can be recognised and utilised. In competitive environments, individuals may feel that only exceptional or extraordinary performance is enough to secure stable opportunities, while others remain overlooked despite having useful skills.

At the same time, the nature of skills themselves is constantly changing. With the rapid advancement of technology and artificial intelligence, some tasks that once required human effort can now be automated or assisted by machines. This does not eliminate human potential, but it shifts demand toward new and evolving skills. Individuals who are unable to adapt or update their skills may find their opportunities gradually shrinking, not because of lack of effort, but because the economic landscape itself is changing.

Another important barrier is lack of economic awareness and guidance. Many individuals do not have access to reliable information about which skills are in demand, which career paths offer stability, or how to navigate economic opportunities. Without this awareness, individuals may invest their time and effort into paths that do not provide long-term financial security.

As a result, the issue is not simply about whether people are willing to work or learn. It is about whether they have equal access to skill development, equal exposure to opportunity, and equal ability to adapt to changing economic realities.

When individuals lack access to relevant skills, platforms, guidance, and supportive environments, their ability to secure stable income becomes limited. This restricts financial growth, increases vulnerability, and contributes to the persistence of poverty.

4. Inflation:

For most people, income does not increase at the same pace as expenses. Over time, things that were once affordable gradually become expensive. The price of food, rent, healthcare, education, and even basic household needs continues to rise.

This gradual increase in prices is known as inflation.

In some cases, income does increase when demand for certain jobs, skills, or services grows. However, this increase does not happen equally for everyone. Many individuals, especially those working in informal sectors, low-income jobs, or fixed-income roles, may not experience income growth at the same pace as rising prices. As a result, while the cost of living continues to increase, their ability to maintain financial stability remains limited.

Inflation does not affect only daily survival. It also affects long-term stability and the ability to build security for the future. Over time, the cost of owning a house has increased significantly. For many families, owning a home represents more than just property. It provides stability, independence, and a sense of security. During times of financial hardship, having a permanent place to live ensures that a family is not exposed to rising rents or forced displacement. However, as property prices continue to rise, home ownership becomes increasingly difficult for economically vulnerable families, keeping them in a cycle of financial uncertainty.

At the same time, inflation reduces the value of income itself. A person may continue working and earning, but their income begins to cover less than it once did. Even when income increases slightly, it may not be enough to match the rising cost of living. This reduces their purchasing power and limits their ability to save, invest, or prepare for future uncertainties.

Over time, inflation not only affects survival, but also affects opportunity. Families may delay education, avoid healthcare, or postpone important decisions because of financial constraints. What begins as small increases in daily expenses gradually becomes a significant barrier to long-term financial stability.

As a result, inflation becomes more than just a rise in prices. It becomes a force that weakens financial security, limits economic mobility, and increases vulnerability to poverty.

Understanding inflation helps explain why poverty can persist even when people are working and earning, because the cost of living and the cost of achieving stability may rise faster than their ability to sustain it.