Is There A Direct Link Between Unemployment And Poverty?


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Oscar De La Huerte Profile
The most obvious link between unemployment and poverty is that people who aren't in employment often don't have an alternative source of income. With no money coming in, finding oneself in poverty is very likely.

The link between unemployment and poverty Poverty, as a social problem, is often linked to employment. Politicians of all parties agree that the best way to ensure poverty levels drop, is to encourage a rise in employment. One of the main objectives of central banks and government finance departments is to promote growth in the economy so that more businesses develop and expand, in turn, creating more jobs.
With more people in employment, the idea is that poverty levels will decrease.

Will employment end poverty? Although the whole point of government is to combat social issues like poverty, there is a growing number of people that feel government and major employers are not doing enough to prevent poverty.

One example campaigner's often cite are the cases where someone is in employment, but is still living below the poverty line. This is often due to a combination of low wages and a high cost of living.
Although the idea of a 'minimum wage' that is used in many countries is meant to bridge the gap between wages and inflation, the introduction of a 'living wage' that takes into account the general cost of living in a specific area is touted by it's supporters as a more suitable solution.

In my opinion, there is definitely a tangible link between unemployment and poverty. The real question is whether there is enough being done to reduce the two.
I would suggest that, as well as trying to raise employment levels, governments should be coming up with more comprehensive and effective strategies to deal with the following issues:
  • Job security
  • Low wages
  • Career creation and progression
Without addressing these problems as factors that are intrinsic to unemployment and poverty, it is difficult to see how a truly viable and effective solution can be found.

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