Q.How are poverty and unemployment related? Are they exactly the same thing? Explain.

Unemployment is a major cause of poverty, but the two are distinct — a person can be poor while employed, or unemployed without being poor.

Poverty and unemployment are closely related but NOT identical concepts.

The connection: A person who is unemployed, or underemployed, earns less than they otherwise would, and in a country with very limited state-provided unemployment support (particularly for India's large informal workforce), a period of unemployment can directly push a household below the poverty line. Unemployment is therefore one of the most important CAUSES of poverty. …