How does unemployment lead to poverty?

Unemployment creates a lack of financial stability, leading to a downwards spiral in social mobility and eventually poverty. The unemployed will have a lower standard of living than most employed people.

Lack of a regular income leads to the inability to be able to maintain the basic needs, including fundamental provisions such as eating healthy foods, buying into health care and providing adequate heating for the home. While there are many types of poverty, the reasons behind poverty are always a lack of money. It is possible to live in poverty even with employment. A low paid worker may suffer much the same hardships.