Unemployment

Unemployment in United States

United States

There is a strong relationship between employment status and mental and physical health. A stable, safe and well-paying job makes it easier for people to live in healthier neighborhoods, access medical care and afford quality child care, education and nutritious food — all critical factors to maintaining good health that are jeopardized by unemployment. Unemployment is associated with a higher risk of all-cause mortality, especially among adults ages 18-24. Unemployment may also lead to lower self-esteem, higher levels of depression, straining of family ties and loss of work friends. The effects of job loss are not limited to the individual. Studies have shown there is a profound effect on impacted spouses and children. 

High unemployment rates increase the economic burden on states due to decreased revenue from income taxes and increased demand for unemployment insurance and social welfare programs. The COVID-19 pandemic has had a profound impact on many social and economic factors that affect health and well-being, including employment, food sufficiency and housing stability.

While anyone can experience unemployment, populations with higher unemployment rates include: 

• Young adults ages 16-24 compared with other working age groups; young adults have consistently had higher unemployment rates than any other age group since 1990. The unemployment rate for young adults was 8.5% in July 2022.
• Black and Hispanic workers compared with Asian and white workers. 
• Adults with less than a high school education; unemployment rates decrease with each increase in educational attainment.

The Department of Labor is working on decreasing the impact of the pandemic on the labor force with its Good Job Initiative. The Department has awarded $122 million in Apprenticeship Building America grants to provide workers with new skills and pathways to in-demand jobs. 

Evidence-based strategies to reduce the unemployment rate are important, especially for the young adult and emerging young adult populations. Programs designed to smooth the school-to-work transition and develop job mobility are recommended, as well as programs that foster the development of skills relevant to the current labor market. Investing in education is another way to reduce the unemployment rate. Individuals with higher levels of education are more likely to be employed with higher incomes and better working conditions.

Healthy People 2030 tracks multiple measures related to employment, including an objective to increase the percentage of employed working-age-people.

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