Wednesday, October 28, 2009

the (community) cost of unemployment

In a world impacted by a deep recession, we all realize that unemployment hurts those who have lost jobs. People lose their source of income, they play into the credit game to make ends meet, and next thing they know they are facing the very real face of poverty in their own lives. Those of us who have been blessed enough to “weather” the recession relatively unscathed are overlooking a hidden reality though. The unemployment of others in our community is costly to us who are neighbors to the unemployed as well.

When an individual becomes unemployed they often receive social benefits designed to temporarily assist in sustaining an individual or family. Government programs such as Temporary Assistance for Needy Families and food stamps or private assistance programs are available to help individuals and families through these ordeals. However, these cost community money. According to www.modestneeds.org, this can be as high as $8664.36 per person each year for public assistance.

The other side of this coin is the amount of revenue a community loses when an individual is not working. If a worker is making $10 an hour (what many would consider a “living” wage), they have a take home pay of $17,777.16 each year that is predominately reinvested into the community (rent, food, etc.). When both aspects are taken into consideration, unemployment has a total effect of $26,441.52 on the community per each unemployed individual!

We need to evaluate what our inacation actually costs. It's easy for us to look at this and place blame, "why aren't these people working? they should just get a job!". What are we doing to assist in this? It's time to stop looking out only for ourselves, but to truly be neighbors to those who most need it. It's messy, it's hard, it's frustrating, it's right. Build your community. What are some of the ways you are developing your local community?

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