Does Loss of Jobs Cause Homelessness?

According to the National Law Center on Homelessness, the average number of homeless individuals in the United States within a given year ranges between 2.3 to 3.5 million. This is a population that continues to grow as economic conditions worsen. Circumstances surrounding job loss, housing costs and minimum wage employment all contribute to this growing trend.

Identification

As homelessness is defined as an individual, or family, lacking in stable housing, the lack of affordable housing is considered the leading cause of homelessness. In 1998, one in five people living in homeless shelters held a full-time job according to a survey conducted in 30 U.S. cities. As the amount of minimum wage earnings continues to wane in the face of increasing inflation rates, the cost of housing grows dangerously out of reach for many low-income, wage earning individuals and families.

Causes

Substance abuse, mental illness and domestic violence all contribute to the growing number of homeless people. However, job loss, or the inability to obtain gainful employment, plays a part in each circumstance. Underfunded and/or nonexistent vocational programs and social service agencies are unable to equip substance abusers, mentally ill individuals and abuse victims with the skills necessary to obtain gainful employment. And those eligible for government assistance either don't know they're eligible, or aren't able to provide the information needed to get it.

Features

A report done in 2006 by the Joint Center for Housing Studies at Harvard University showed that 15 percent of the U.S. population pays more than half of their yearly income towards housing costs. According to the National Low Income Housing Coalition, a person would need to make a minimum of $16.31 an hour in order to pay for rental housing and utilities and not pay more than 30 percent of her income to cover it. This was the national housing wage requirement for 2006. The added costs of food, transportation, child care and clothing leave families and individuals no choice but to juggle expenses in an attempt to buy more time to repay delinquent bills. Should job loss occur, the likelihood of having a savings account to fall back on is slim.

Effects

While low-wage employment and job loss occurrences may contribute to the number of homeless people, poverty is, more often than not, a pre-existing condition. Should an unexpected crisis occur--be it a health problem, or car repairs, or domestic violence--an individual or family with limited means becomes especially vulnerable to losing their home. And those with a limited or non-existent support network have little choice but to relocate to a homeless shelter, or to the streets.

Significance

Fifty percent of the homeless population is made up of substance abusers and the mentally ill. The other 50 percent consists of single-parent and two-parent families. And while job loss most certainly contributes to these numbers, poverty is the precipitating factor that leads to homelessness. Housing costs, low-wage jobs, ineffective social service programs and increasing inflation rates set the stage for those of limited means to sink or swim. The loss of a job or the onslaught of a crisis is often the last straw that breaks the back of poverty, with homelessness as the only remaining option.

Resources

• Employment & Homelessness
• Homelessness Resource Center - Employment