The relationship between poverty and labour market participation in Russia is analysed using two poverty measurements: a monetary measurement in terms of an absolute threshold line and a subjective measurement based on poverty level self-assessments. The individual panel data used are taken from the RLMS survey (Russia Longitudinal Monitoring Survey) cover-ing the period from 1994 to 2000. Status on the Russian labour market (official, unofficial or diversification) has to be considered to understand the risks of poverty to which those in employment are exposed. It is not enough to observe solely labour market participation (employment/non-employment). One fundamental finding is that having a single declared job (official economy) increases the probability of being and feeling poor, as opposed to working in the unofficial economy. However, individuals with a number of jobs (diversification) have a lower probability of being or feeling poor. Wage-earning (official) employment is equated with the most precarious material situation in Russia today.