what is the relationship between unemployment and poverty?

Answer 1

Loosely correlated but not exact. Unemployment insurance income counts as income and your former salary (thus the amount you paid in to the system) might be much higher than the poverty level of income. Also, you might be in a two-income household and your spouse could make six figures. This actually happened to a LOT of people after Greenspan pricked the NASDAQ bubble that he had created in the first place. You had a husband and wife in tech and one lost their job and looked for another and did occasional consulting work while collecting unemployment. By the time the benefits ran out, interest rates were so low that the couple refinanced their mortgage and now it made sense for one of them to stay at home and pull the kids out of daycare. There were a half dozen examples of this just in my neighborhood - if you multiply this times the rest of the country I think that gets you to the 3 or 4 million people that Krugman thinks aren't counted in the unemployment figure because they supposedly "gave up looking."

Answer 2

There is no direct relationship between and unemployment and poverty except in the following When eligible candidates are given employment by then they increase national income and it is it is refleted in Perapita income and if it increases then the demand increases etc and the poverty is getting allevated. Unemployment leads a man into Debt trap which means that he becomes more debted and due to the unemployment of the factors of production and this debt trap makes the man to become more indebted and finally the poverty decreases.

Answer 3

Not really anything in common, because you can only file for unemployment for so long, then you aren't eligible and you end up being poor. So I guess that unemployment is one step away from being poor. But since there are millions of poor that have never been on unemployment, but simply live in areas (countries) without many resources these people would be considered poor to typical americans.

Answer 4

Linear relationship. However, poverty is also possible with low unemployment with unequal distribution of wealth and extremely low wages in the labor market. Imagine everybody being employed and earning on average Rs. 1200 monthly.

Answer 5

Obviously if you are unemployed you run the risk of being poor.

Beyond the obvious quick answer, I think a huge factor is the lack of affordable education (especially for women) that perpetuates the poverty cycle.

Answer 6

They are directly proportional. Because the first one leads to the last one unless you are born to a richman.

Answer 7

unemployment & poverty are both mental diseases....
these diseases constantly looks for lazy people....

Answer 8

A very thin line !!!

Answer 9

corelation

Answer 10

made for each other.