Question

Explain the relationship between unemployment and poverty.

Trace the relationship between unemployment and poverty.

Answer 1

There is a close relationship between unemployment and poverty.

1. Poverty in India is largely caused by widespread unemployment along with low wage rates.
2. Unemployment and underemployment result in low levels of income, causing a large proportion of the population to live below the minimum subsistence level.
3. Low quality of employment is equally responsible for poverty.
4. Unemployment leads to wastage of human resources and lower national output.
5. Unemployed people generally have no income and are often poor, increasing the number below the poverty line.
6. During periods of mass unemployment, poverty and income inequalities tend to rise.
7. Unemployment also increases economic burden, as it raises dependence on working individuals, adversely affecting overall quality of life.