Unemployment in United States

United States

There is a strong relationship between employment status and mental and physical health. Unemployment can lead to lower self-esteem, higher levels of depression and straining of family ties or loss of work friends, and it is associated with a higher risk of all-cause mortality. Furthermore, the effects of job loss are not limited to the individual, as studies have shown there is a profound effect on impacted families and children. A stable, safe and well-paying job makes it easier for people to live in healthier neighborhoods, access health insurance benefits and afford quality child care, education and nutritious food — all critical factors to maintaining good health that are jeopardized by unemployment. 

High unemployment rates can put a strain on state economies due to decreased revenue from income taxes and increased demand for unemployment insurance and social welfare programs.

Populations with higher unemployment rates include: 

• Young adults ages 16-24 compared with older working-age groups; young adults have consistently had the highest unemployment rates of any age group since 1990. In July 2024, the unemployment rate for young adults was 9.8%. 
• Black and Hispanic people compared with Asian and white people. 
• Adults with less than a high school education; unemployment rates decrease with each increase in educational attainment.

Unemployment insurance or temporary financial help may alleviate the impact of unemployment on self-reported health.

The U.S. Departments of Education, Labor and Commerce have collaborated on the Unlocking Career Success initiative, which aims to prepare high school students with skills and knowledge necessary for their future careers. It offers a multifaceted approach that includes dual enrollment (the ability to earn college credits while in high school), work-based learning opportunities and career advising. 

Additionally, the Good Jobs Initiative by the Department of Labor offers guidance on establishing and identifying equitable access to quality employment opportunities, devoid of discrimination, for both employers and workers.

Healthy People 2030 tracks multiple measures related to employment and has an objective to increase the percentage of working-age people who are employed.

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“How Does Employment—or Unemployment—Affect Health?” Issue Brief. Health Policy Snapshot: Public Health and Prevention. Robert Wood Johnson Foundation, March 12, 2013. https://www.rwjf.org/en/library/research/2012/12/how-does-employment--or-unemployment--affect-health-.html.

Krug, Gerhard, Stefan Brandt, Markus Gamper, André Knabe, and Andreas Klärner. “Unemployment, Social Networks, and Health Inequalities.” In Social Networks and Health Inequalities, edited by Andreas Klärner, Markus Gamper, Sylvia Keim-Klärner, Irene Moor, Holger Von Der Lippe, and Nico Vonneilich, 215–29. Cham: Springer International Publishing, 2022. https://doi.org/10.1007/978-3-030-97722-1_12.

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Nikolova, Milena, and Boris N. Nikolaev. “Family Matters: The Effects of Parental Unemployment in Early Childhood and Adolescence on Subjective Well-Being Later in Life.” Journal of Economic Behavior & Organization 181 (May 26, 2018): 312–31. https://doi.org/10.1016/j.jebo.2018.05.005.