question_answer 7)

Is there any relationship between unemployment and poverty? Explain. 

Answer:

There exists a deep nexus between unemployment and poverty. Unemployment or under employment and the casual and intermittent nature of work in both rural and urban areas drives unemployed people who do not have resources to make their ends meet into indebtedness and poverty. If employment opportunities are generated, then more people will be employed leading to rise in their income which in turn will reduce poverty. Due to unemployment, income of the people is reduced to a large extent and they are unable to get access to education, health facilities, proper sanitation, etc. This causes poor quality of living and hence poor human capital and skills which in turn lead to poverty making a vicious circle of poverty.