In mainland China's urban areas, the number of poor people has increased since the 1990s and a poor class is in the making. As the present focus of economic reform if on the state-owned enterprises, research on this phenomenon has almost all been focused on questions concerning laid-off workers of these enterprises. However, in addition to this group, there is a large, mostly-ignored force of peasant-workers moving from the rural areas to the cities. Therefore, the situation of these peasant-workers warrant our concern. This article will study the circumstances of these people and the impact of the existing welfare system on their life.