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Why do some people not work?

Structural barriers to employment include lack of jobs in a depressed area, a mismatch between employers' needs and workforce skills and discriminatory hiring practices. Personal reasons for being unemployed include limiting disabilities, lack of education and training, childcare costs and lack of transportation.

work.chron.com - 5 Reasons People Stay Unemployed - Work - Chron.com
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Opinions as to why people stay unemployed are sometimes based on judgmental stereotypes of lazy grifters, but the realities of unemployment are much different. A study published by Yale University researchers in 2020 showed no evidence to support the contention that enhanced unemployment benefits are a disincentive to working even when unemployment compensation exceeds job earnings. While there may be a few lazy individuals who would rather sit around and do nothing, most people crave meaningful work that offers a decent wage. Unemployed people struggle to pay the bills and worry about feeding their families. Some hard-working Americans end up living in a van with their children due to circumstances outside their control. Structural barriers to employment include lack of jobs in a depressed area, a mismatch between employers’ needs and workforce skills and discriminatory hiring practices. Personal reasons for being unemployed include limiting disabilities, lack of education and training, childcare costs and lack of transportation. A list of reasons for being unemployed can be divided into five broad categories.

Realities of Unemployment

Voters trust their state and national leaders to maintain the quality of life that U.S. workers have come to expect. Levels of unemployment make or break the careers of politicians. When the economy goes into a tailspin, workers can suffer dire consequences, including sudden and unexpected unemployment. Those living paycheck-to-paycheck with little or no savings are thrown into a crisis situation. Lingering unemployment can lead to depression, physical illness, divorce and suicide, according to Debt.org. Society loses out when skilled workers are sidelined altogether or forced to take minimum wage jobs that don’t utilize their talents.

1. Lack of In-Demand Skills

Structural unemployment occurs when there are good jobs available, but the local workforce lacks the requisite training and skills for hire. Applicants for industrial positions may have the drive and aptitude to fill open positions, but local companies don’t have the time, inclination or resources for on-the-job training. The situation can be especially acute if there are no community colleges or vocational schools nearby to offer hands-on vocational training that aligns with workforce needs. Workers can find themselves out of a job for a very long time if the skills they possess have become obsolete due to automation and robots taking over jobs that used to require trained workers. Laid-off workers without access to retraining may face financial ruin. Entire communities can be plunged into poverty if the only factory in town relocates to a lower tax state or moves operations off-shore. White-collar workers can face extended periods of unemployment when the particular skills they possess, although important to society, are not in high demand. For example, college professors in certain academic disciplines, actors, artists and writers may face periods of unemployment because of stiff competition and limited job opportunities. Well-educated professionals may even have trouble landing a temporary job to pay the bills because employers consider them overqualified.

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2. Lack of Jobs

Cyclical unemployment results from cycles of growth and contraction in the economy related to supply and demand. A robust economy provides a wide range of plentiful job opportunities that give consumers the confidence to buy cars, houses and consumable goods. Periods of growth are typically followed by contraction due to factors such as higher interest rates, consumers’ overextended credit and foreclosures on homes buyers can’t afford. Unemployment rises as businesses and industries slow production and lay off workers. Finding a job during a recession can be difficult if not impossible. Further compounding the problem is the challenge of finding a job that pays enough to meet basic needs, especially in big cities like San Francisco where living costs are well above average.

3. Lack of Access and Opportunity

Stereotypes of people not wanting to work are overshadowed by stories of people who can’t get jobs due to discrimination and employer bias, according to Job Honor, a nonprofit organization. Job Honor seeks to dispel negative attitudes toward marginalized applicants by encouraging employers to adopt more inclusive hiring practices. Certain barriers to employment are situational and not a reflection of character.

​Examples:​

Homelessness

Illiteracy

Limited English proficiency

No high school diploma or GED

Employment gaps

No current references

Transportation issues

Unaffordable childcare

Similarly, background checks are used to weed out otherwise enthusiastic and qualified applicants who may have a poor credit history or criminal convictions on their record. Having served time for a felony can make it especially difficult to find a job that requires a license. For example, states like Michigan won’t issue a real estate license to an applicant previously convicted for felony fraud, reports AYPO Real Estate. Hiring managers may have unconscious biases against certain groups of applicants resulting in a workforce that lacks diversity. Personal reasons for being unemployed include struggles with mental illness, alcohol addiction or chronic health conditions. Military veterans may have difficulty with post-traumatic stress disorder and transitioning to civilian life. Although illegal, some employers still discriminate against applicants who disclose a mental or physical disability. Data compiled by the U.S. Bureau of Labor Statistics, or BLS, reported that 17.9 percent of Americans with a disability held jobs in 2020 as compared to 61.8 percent of individuals without a disability. In 2019, the year before the pandemic, 19.3 percent of individuals with a disability had jobs as compared to 66.3 of individuals without a disability.

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4. Lack of Employability

According to Business News Daily, bias against unemployed workers starts right after they leave a job and worsens over time. Hiring managers are quick to assume that the applicant was a problem employee. Even if the applicant left voluntarily or lost a job due to the company going bankrupt, the applicant is stigmatized. Successful professionals are expected to seamlessly move from one job to the next without gaps in their employment history. Unemployed workers who are location-bound may struggle longer to find a job in their area. Another reason why people stay unemployed is because they don’t have good job searching skills and aren’t connected to resources like Career One Stop that help job seekers. Computer access and skills may be limited if they’ve been out of the workforce a while. Their resume may be outdated and unimpressive. They might not know how to write a cover letter relating their skills to the advertised position. Even if granted an interview, their interviewing skills may be rusty and socially awkward.

5. Lack of Hope

Long-term unemployment can erode self-esteem, self-respect and self-worth. The stress of unemployment spills over into other areas of life. CFI reports that 46 percent of unemployed workers experience strained family relationships. Applicants with marketable skills typically intensify their efforts by networking and applying everywhere. They may seek out mentors for career advice. Depending on their age, they may retire early or return to school for retraining.

work.chron.com - 5 Reasons People Stay Unemployed - Work - Chron.com
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