Unemployment and Homelessness

BY Mahwish Moiz. LAST REVISED ON August 20th, 2023.

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everything you need to know

Why are people unemployed and homeless? If you are jobless and on the streets who can help? This article explores both questions and more.

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Unemployment is one of the leading causes of homelessness around the world. Unemployment happens because of a lack of employable skills or because of intense competition in the marketplace. Many people have healthy jobs until an unfortunate occurrence like downsizing or closure of business strips them of their employment. It is worth noting that employment doesn’t necessarily translate into homelessness. An unemployed person could still hold down a house, while an employed person could find himself living in a tent city.

Why are people unemployed and homeless?

i A cloud of words related to unemployment.A cloud of words related to unemployment. | People are homeless and unemployed for many reasons.

While unemployment doesn’t necessarily cause homelessness, there is a strong correlation between the two. Many unemployed people are homeless because of a lack of financial resources to fund their accommodation needs. This rings true when you consider the skyrocketing property prices around us, especially in urban cities. If a person can’t earn enough to keep up with the rise in rent and other utility costs, they will either be evicted or forced to give up their home.

While homeless people can find employment, it can be difficult. Homelessness makes it difficult for individuals to invest in skills training, for instance. It also makes it tough to commute to the workplace regularly or be punctual.

There is also the stigma associated with being homeless. Participants in a study reported the shame they experienced when giving their shelter’s address to an employer.

Other factors behind continuous unemployment for homeless people include lack of educational opportunities, disabilities, and substance abuse. The result is that for some unemployed people, going into homelessness means slipping further down the unemployment hole with little chance of getting out.

Unemployment and homelessness statistics

Unemployment is a prime factor behind homelessness in the US. Here are some interesting statistics to consider:

  • The national unemployment rate has been 5.75 percent, on average, between 1948 and 2020
  • The highest unemployment rate has been 14.7 percent in April earlier this year, while the lowest was 2.5 percent back in May 1953
  • Approximately 553,742 people were experiencing homelessness on any given night as of January 2017, or about 17 people per every 10,000 people in the general population
  • According to a survey of homeless people in Seattle:
    • 20 percent of participants were employed either full-time or part-time
    • 45 percent of participants were unemployed and looking for jobs at the time
    • 8 percent of respondents claimed to have received remuneration for work over the past year
    • 64 percent of participants had been experiencing homelessness for over a year
  • Over 75% of people who earn between 30% and 50% of their area’s average median income are rent-burdened

What can the government do to prevent unemployment and homelessness?

The most straightforward way in which the government can prevent unemployment is to ensure that the number of employment opportunities can keep up with the demand for employers nationwide. This can come about by reducing barriers to entry associated with employment. For instance, the number and scope of scholarships for attending universities can be increased. Investing in education and skills training programs will ensure that more people can avail of high-level jobs. Startups and small businesses employ people with a range of skills and often require little or no experience.

The government can fund the creation of a healthy startup environment to foster job opportunities. Regarding solving homelessness, the government needs to increase the number of available and affordable housing units. When the demand for low-income housing isn’t met, people have no choice but to settle for homelessness. It doesn’t have to be that way, and a focus on affordable housing units can change that.

There is also a need for ‘Housing First’ across the US. This is the principle of giving unconditional accommodation to a homeless person up-front. The person can then access other forms of support as well. This differs from expecting a homeless person to ‘qualify’ for housing. This policy guarantees a home for the homeless and gives them a stable base for dealing with other problems. Finland implemented ‘Housing First’ and achieved immense success.


In the US, Veterans Affairs has reduced homelessness to a vast extent using this approach. You don’t have to be in the government to help unemployed and homeless people, though. You can still make a difference for them as regular citizens. For starters, every citizen must make it a point to empathize with homeless people. We must not be wary of greeting them or engaging with them.

We must acknowledge their existence as worthy human beings. It is also possible to prepare special care packages for the homeless. These could include food, water, and clothes that will help them get through another day. Volunteering at drop-in centers, food banks, or local shelters will also have an impact.

Not only will it allow you to help the homeless, but it will also make it easier for you to empathize with them. You can make donations to charities or programs geared towards ending homelessness. Such programs need all the funds they can get to have a positive impact on the lives of the homeless. Even a paltry amount donated by you can go a long way in helping the needy.

You could also consider becoming an advocate for the homeless. This can include educating people about the plight of the homeless. You can also fight for the rights of those who face constant harassment. By raising awareness like this, you can improve the lives of the homeless.

If you are unemployed and homeless, who can help

If you are a homeless person suffering from unemployment, you have a few options. Your first move should be to check in with employment programs in your community. You can find out more about them by asking around or searching them up on the Internet. You may also reach out to social workers and relevant NGOs. They will help you get in touch with potential employers who might be interested in availing of your services.

further reading

This article focused exclusively on unemployment and homelessness. What it focused little to none on, however, is sleeping in your car...

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WANT TO LEARN MORE ABOUT SLEEPING IN YOUR CAR?

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key takeaways

  • Homelessness is a severe social issue prevalent across the world that affects all kinds of people
  • Homelessness occurs when people lack safe, adequate, and stable places to live in
  • One of the leading causes of homelessness is unemployment
  • We can define unemployment as the state of being unable to have a job
  • Unemployed people become homeless because of an inability to fund their accommodation needs
  • Homeless people might stay unemployed because of many barriers, including the lack of education, skills training, inability to commute regularly and be punctual, and substance abuse
  • Government can reduce unemployment by investing in more employment programs, reducing barriers to education and skills training, and fostering a healthy business environment
  • Homelessness can be reduced by creating more affordable housing units and by investing in ‘Housing First’
  • Even as a regular citizen, you can help homeless people by spreading awareness and advocating for their rights
  • As a homeless person, you can seek help from relevant NGOs, social workers, and employment programs in their respective communities
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