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 health insurance benefits 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. Furthermore, 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. Over the last few years, 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.

Populations with higher unemployment rates include: 

• Young adults ages 16-24 compared with older working age groups; young adults have consistently had the highest unemployment rates of any age group since 1990. In July 2023, the unemployment rate for young adults was 8.7%. 
• 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.

Unemployment insurance or temporary financial help may mitigate the impact unemployment has on self-reported health.

The U.S. Departments of Education, Labor and Commerce have collaborated on the Unlocking Career Success initiative, which aims to prepare young students with skills and knowledge necessary for their future careers. It offers a multifaceted approach that includes dual enrollment (the ability to earn college credits while in high school), work-based learning opportunities and career advising. 

Additionally, the Good Jobs Initiative by the U.S. Department of Labor offers guidance on establishing equitable access to quality employment opportunities, devoid of discrimination, for the workforce.

Healthy People 2030 tracks multiple measures related to employment and has an objective to increase the percentage of working-age people who are employed.

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