Effects of Unemployment on the Family

Abstract

AbstractThis paper reviews evidence about the incidence and impact of unemployment on the family. It finds that while the unemployment rate faced by husbands and wives is relatively low, many unemployed people fall into this category (36.2% were husbands and wives in 1998). Sole parents have a high unemployment rate. Hence, around one-third of unemployment is borne by parents with dependent children. Joblessness in families is also examined. The impacts of unemployment on families include poverty and hardship, strained relationships, poorer health (although the causal relationships are not always clear), and housing stress. Unemployment could also harm children’s development and employment futures. Some policy issues are explored including the need to provide protection for the living standards for families affected by unemployment and taking a number of actions to reduce unemployment. The dilemmas posed by mutual obligation and the trend to precarious low-paid work are also raised.