Title: A Global Dilemma: How Unemployment Creates Poverty
Headings: A Global Dilemma: How Unemployment Creates Poverty
A Global Dilemma: How Unemployment Creates Poverty
1. The Loss of Income
2. Perpetuating the Poverty Cycle
3. Increased Criminal Activity
4. Long-term Unemployment
The Vicious Cycle

Content: 1. The Loss of Income
The obvious, straightforward answer of how unemployment creates poverty is through the loss of income. With joblessness comes a loss of income, and many families are left without sufficient incomes to meet living expenses. This can lead to indebtedness from borrowing money to support one’s needs, use of savings or even to homelessness and malnutrition if individuals are unable to find other sources of finance. When individuals are forced to use savings to cover costs today, their future retirement funds are reduced. This creates negative long-term effects on the economy such as high levels of youth unemployment around the world. Youth unemployment today will decrease the incomes of future retirees and increase the burden on the government. 2. Perpetuating the Poverty Cycle
With current levels of youth unemployment increasing the chances of poverty in the future, the burden to work is more heavily placed on future generations. With unemployment shocks such as this, individuals remain in a poverty cycle.