Effects of Poverty

How Does Poverty and Unemployment Affect the Community?

Poverty and unemployment often go hand-in-hand. But how does poverty and unemployment affect the community?

There are three significant ways a community is impacted by this dual force:

1. Lack of jobs can lead to higher crime:

Without the resources to care for oneself or one’s family, a person may resort to crime. Communities with higher crime rates are never places for growth or thriving, and they certainly are not good places to raise a family. Among one study’s conclusions, “There is a need to align the positivity of judicious income distribution with the broad-based economic growth that would be helpful to reduce poverty and crime rate across countries.”[1]

2. Unemployment increases health risks:

The National Institute for Occupational Safety and Health found, “Respondents who were unemployed were more likely to report adverse health outcomes than those employed and self-employed. Prevalences of fair or poor self-rated health, poor physical and mental health, obesity, and 10 chronic health conditions increased from the short-term unemployed to the long-term unemployed and were highest among those unable to work. More than half of the respondents who were unable to work reported having fair or poor general health, poor physical health, or diagnosed depression.”[2] These studies were undertaken in a developed country where jobs are more readily available. These effects are compounded in a country where jobs are scarce and hard to find.

3. Lack of jobs puts future generations at risk:

Children International says, “Children growing up in poverty face constant daily hardships and difficult living conditions that can trap them for life. The unrelenting stress of poverty hinders a child’s brain development and can even have long-term consequences on their physical and mental well being. These effects then follow them into adulthood and the cycle of generational poverty continues.”[3] A community cannot grow or thrive if its children are constantly and cyclically at risk for poverty, hunger and no education.

These reasons and more are the basis for GFA World’s Christmas Gift Catalog. One small gift from donors can start to change the lives of the world’s poorest people. A pair of goats means milk and offspring. It’s the beginning of an ongoing income generation that is sorely needed. With this transformation in their circumstances, individuals do not need to resort to crime; they can afford food and needed healthcare, and their children can go to and remain in school. All of these things will bring positive benefits to the community.

Look through the GFA gift catalog today and pray about how you can build up a family and a village through your generosity.

Learn more about the effects of poverty and how GFA is helping!

[1] “Dynamic Linkages Between Poverty, Inequality, Crime, and Social Expenditures in a Panel of 16 Countries: Two-Step GMM Estimates.” Journal of Economic Structures. June 5, 2020. https://journalofeconomicstructures.springeropen.com/articles/10.1186/s40008-020-00220-6#Sec4.
[2] “NIOSH Study Examines Relationship between Employment Status, Healthcare Access, and Health Outcomes.” Centers for Disease Control. November 18, 2021. https://www.cdc.gov/niosh/updates/upd-11-18-21.html.
[3] “The Poverty Problem: Facts & Issues.” Children International. Accessed July 8, 2023. https://www.children.org/global-poverty/global-poverty-facts.