What is the relationship between unemployment and poverty? Explain.

The poor people from rural areas migrate to urban areas in search of employment and livelihood. These people either remain unemployed or work as casual labourers. The casual labourers have no job security, no assets, limited skills, sparse opportunities, no surplus to sustain them and could be removed anytime due to less work.

Due to unemployment and the type of work in rural and urban areas results in indebtedness. Indebtedness is the major cause of poverty. Thus, unemployment and poverty are inter-related to each other.