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: In a Brazilian case study, unemployment of parents was shown to place significant stress on the children of the household. With unemployed adults, children are more likely to drop out of school to enter the work force. Without completing the necessary education, lower levels of human capital are obtained which leave these children in unstable working environments in the future. These outcomes will tend to create generational poverty. 3. Increased Criminal Activity
While the previous examples explain how unemployment creates poverty directly through affecting income, it also leads to increases in criminal activity. Areas with high levels of unemployment, especially youth unemployment, have been found to have higher levels of crime and vandalism. When individuals are unable to earn incomes legally to supply for their families, they may turn to criminal and violent activity. Two-fifths of those individuals who take part in criminal activity stated that unemployment was the main reason for their illegal involvement while only a tenth believed in the cause. When individuals turn to violence to escape poverty, their chances of them staying criminals grow;