How Unemployment Affects People Living below Poverty Line in Australia

This article examines the impact of unemployment on individuals living below the poverty line in Australia. It explores the social determinants of health and the challenges faced by this population. The article discusses the effects of unemployment on mental health, health literacy, child development, health-seeking behaviors, and housing. It also suggests ways to address these negative impacts.

Running head: Social Determinants of Health 1
How Unemployment Affects People Living below Poverty Line in Australia
(Author’s name)
(Institutional Affiliation)

Social Determinants of Health 2
Introduction
The determinants of health include a range of political, ecological, social, cultural and
economic characteristics that determines the health of individuals and their families(Ferrer,
2018). These factors often integrate with each other contributing to the current health status of a
person and their chances of becoming ill or their chances of maintaining good health. Most of the
social determinants of health are affected by inequality brought by social justice in a society(The
Australian Institute of health and Welfare, 2014). Such inequality exists due to poor distribution
of power, money, and resources at local, domestic and international level. Social determinants of
health are conditions in which people are born, grow, live, age, work, and the systems they found
that affect health, normal functioning, life expectancy, health risks and quality of health
outcomes. In that way, social determinants of health shape the wellbeing of individuals, people
economic status plus health inequities in a country (AIHW, 2018). However, these determinants
of health are not only affected by the unequal distribution of resources only but also things like
social isolation and lack of sense of control over certain choices and circumstances.
According to the World Health Organization (WHO), such determinants of health that
affect individual health status include stress, social gradient, unemployment, work, early life,
food, education, transportation, and addiction(WHO, 2015). This study seeks to cover how
unemployment affects the wellbeing of people living under the poverty line in Australia.
Unemployment is defined by WHO as lack of jobs, seeking for work or have ceased working.
Lack of employment increases dependent ratio, poverty, illiteracy, and thus affecting people’s
health (WHO, 2017). Poor government and social policies have been termed as major causes of
unemployment. People living under poverty lines can either be not employed or lack jobs at
all(National Collaborating Centre for Determinants of Health, 2015). In that way, such a

Social Determinants of Health 3
population is prone to poor health status due to the adoption of unhealthy foods, poor lifestyles
and lack of money for the hospital.
Unemployment as a Social Determinant of Health
According to WHO, unemployment puts people at health risks at which the risk is more
severe when unemployment is widespread. Evidence from various studies and nations suggest
that, even after catering for other social determinants of Health, unemployment reduces life
expectancies and increases the risk for both communicable and non-communicable diseases
(WHO, 2017). The health statuses of unemployed individuals are linked with social, physical,
psychological and financial consequences(NSW Ministry of Health, 2013). The health effects of
unemployment begin when individual first start feeling their jobs is threatened (WHO, 2017).
That alone instills anxiety about job security which can lead to a mental disorder such as
depression.
According to Australian Institute of Health and Welfare 2018, the proportion of
individuals aged over fifteen years who are unemployed in Australia have increased in the last
two decades from 58% in the year 1997 to 62% in the year 2017. However, in the same duration
of time, the rates of unemployment have fallen from 7.9% to 5.4% in the general population. The
same statistics show that there are about 1.4 million families in Australia that are jobless making
up about 21% of all the families. In June 2012, about 339,000 families in Australia were jobless
of which 11% of those were dependent. Such unemployment causes emotional stress bringing
impacts on both psychological and physical wellbeing of individuals.
As soon as a person is employed, quality of work helps the people to protect their own
health, have a positive sense of identity, instill self-esteem while at the same time providing an
opportunity for personal development and social interactions (Public Health Association of

Social Determinants of Health 4
Australia,2018). However, there are many dimensions of work that influences health. These
include working hours, conditions, job control, and demands that may have impacts on mental
and physical health. In that case, therefore, the quality of work is crucial. Rates of unemployment
and poor quality of work can be increased by personal skills and qualification, disabilities,
mental health, ethnicity, social exclusion, and people having more caring responsibilities.
People Living under Poverty Lines in Australia
According to the Australian Council of Social Service 2018, people are in poverty when
their income after taxation falls below levels that are considered insufficient to achieve the
required standards of living. Poverty in Australia cannot simply measure using general inequality
since it usually exists due to income inequality among people(Lay-Yee, Milne, Davis, Pearson,
& McLay, 2015). Looking at the international context in many wealthy countries, the individual
falls under the poverty line when half of their median household is disposable income (ACOSS,
2018). Even before taking account of housing cost, individuals earning around 433 dollars a
week or a family with 909 dollars a week are termed to be below poverty lines. After taking into
account all household costs, about one unto eight of all Australian live under the poverty line.
The poverty line in children is much higher where about 17.3% fall in this population. Therefore,
altogether, there are about 3.05 million Australian including 739,000 children living under the
poverty line today (ACOSS, 2018).
Looking further to Australian statistics provided by the Australian Council of Social
Service, more than four hundred thousand youths in Australia are currently below poverty lines.
The current average poverty gap between the income of people in poverty and those below
poverty lines is about 135 dollars per week. Out of those, about 53% rely on social security for
household and 38% from wages (ACOSS, 2018). One major source of child poverty in the

Social Determinants of Health 5
country is sole parenting which contributes to 32% of high poverty rates. The majority of
individuals under the poverty line live in rented houses whereas about 15% of them live in
homes owners without a mortgage. In addition to these statistics, individuals who receive income
support living below poverty lines are about 26 %(ACOSS,2018). Although Australia has been
ranked as number fourteen in English Speaking Wealthy nations, there are many individuals and
their families that are still suffering under the poverty lines conditions. There are many causes of
poverty in Australia. Some of these causes are built across Australian society which includes
unemployment and income, housing, education, health, and services (WHO, 2017). However,
all these causes are work and employment-related which affect people’s earnings (ACOSS,
2018). Despite the fact that the unemployment rates are decreasing constantly, there are people
who work just a few hours a day and thus they lack social security for their income(Marmot,
2011).
Impacts of Unemployment on Health Status of People Living under Poverty Line in
Australia
Employment is one major source of income for many individuals living in Australia.
Lack of employment means further poverty and thus resulting in different health problems.
Unemployment affects individual health in various ways. This section is going to describe
various ways in which the health of people living under the poverty line in Australia is affected
due to lack of employment.
Unemployment impacts on Mental Disorders
Several studies suggest that unemployment and mental health are related. Individuals
who are currently unemployed or their jobs are threatened are usually full of anxiety and
psychological imbalance a thus they are prone to depression (AIHW, 2018). By looking at

Social Determinants of Health 6
population data in Australia, most people living under the poverty line and are unemployed have
been associated with major depressive disorders that affect their daily living and emotional
functions. A national survey done in the United States found that individuals who were
unemployed were prone to both minor and major depression(Butterworth, Leach, Pirkis, &
Kelaher, 2012). Individual who moved from being unemployed to good and quality work was
found to have psychological balances and thus their overall health statuses were improved. A
study by Butterworth et al in 2012, found that the baseline mental health status acts as a baseline
predictor of the overall time the individuals had spent being unemployed in Australia. By
following that study, men and women who had experienced unemployment for more than four
years spent a longer time in mental institutions than those who were employed due to aggravated
depression.
Unemployment and Health Literacy
Due to lack of unemployment, people living under the poverty levels usually have no or
less income to an extent they cannot afford secondary and higher education(Johnson, 2015).
Education normally equips someone with the knowledge to read and write plus an understanding
of information easily (AIHW, 2018). Such people have difficulties in understanding healthy
lifestyles and patient education easily and thus they are at a disadvantage. Due to lack of finance,
individuals who are usually unemployed lack funds to reach medical professionals and thus they
are unable to understand current trends of diseases, modes of prevention and even treatment .
Health literacy is a key factor that facilitates personal health outcomes. When one lacks enough
education, that person is usually associated with poor health(Johnson, 2015).
Unemployment effects on Child Development

Social Determinants of Health 7
Due to poverty and low incomes that are brought by unemployment, children fall in harsh
early life stages that greatly affect their ways of living. The foundation of every human being
begins with perinatal and early childhood periods (AIHW, 2016). The effects of childhood
development usually affect the personal emotional, physical, and cognition that has a great deal
when it comes to economic participation, influences on school success, social interaction, and
health. According to AIHW 2018, 10% of the mothers who gave birth in 2015 had smoked at a
given period during pregnancy. In that year, smoking varied from 3.4% in people over the
poverty line to 18% from those under the poverty line (AIHW, 2018). Other than that, a good
number of children entering the primary school from low economic status were accesses to have
various developmental issues including emotional maturity, physical health and wellbeing,
communication and cognition skills and general knowledge (AIHW, 2018) . This indicated that
children who come from families under the poverty line were more at risk of developing
developmental childhood problems those others.
Unemployment effects on Health seeking behaviors
Health seeking behaviors of individuals involves the way people respond to treatment
when they get sick. Health seeking behaviors can be affected by so many factors one of them
being unemployment (AIHW, 2018). Unemployed people usually have financial constraints and
thus they prefer cheap over the counter drugs other than going to see a doctor at a fee(Petersen,
Baillie, & Bhana, 2012). Other than that, most unemployed individuals especially those affected
by poverty usually do not attend screening programs for diseases like cancer and thus are at risk
of getting morbidities and chronic diseases (WHO,2017). Most of these fail to attend such
programs due to fear they might have a disease which they cannot cater for their costs. Due to
these reasons, they live with diseases that can be treated at early stages only to realize them when

Social Determinants of Health 8
they have fully developed. Therefore, this population is normally prone to low life expectancy as
they perceive prevention strategies as expensive more than curing(AIHW, 2018) . In addition to
that, such a population does not practice simple prevention methods such as body activities as
they are already under income associated stress.
Unemployment impacts on housing and homelessness
Access to affordable, appropriate housing can limit the risk of individuals living under
the poverty levels in Australia if they have good jobs. Due to unemployment, this population
lives in overcrowding and poor housing which may lead to the development of poor mental and
physical health (AIHW, 2016). Some lives homelessness without houses as they lack enough or
no incomes to afford houses or accommodation. Poor quality of houses associated with lack of
funds due to unemployment leads affects their lives greatly. According to AIHW, low incomes
earning associated with unemployment increases the risk of poor-quality housing and associated
health problems. In 2016 Census, about 116,000 women, men, and children in Australia were
homeless. In the same year, 195,000 households were on an on a social housing waiting list and
still, they have been waiting for more than two years (AIHW, 2018). Overcrowding was much
higher in the same year in indigenous population on which most people based on household
needs, required one extra room (AIHW, 2018). Poor housing increases chances of spread of
diseases, poor hygiene, and malnutrition. In that case, therefore, people living below the poverty
line are prone to communicable diseases, stress, risks for injuries, and both noise and air
pollution.
How the Negative Impacts of Unemployment on People Living below the Poverty Line in
Australia can be addressed

Social Determinants of Health 9
In order to protect the health status of people living below the poverty line, certain issues
regarding unemployment in Australia needs to be addressed. This includes implementing both
social and government policies. Government policies in Australia play a major role regarding
how people will live equally across Australia(National Collaborating Centre for Determinants of
Health, 2015). Unemployment is majorly brought by poor distribution of resources thus bring up
inequality (WHO, 2015). For the government to combat unemployment, a policy change is
needed in order to allow that all Australians are able to cater for themselves or at least have equal
chances(Lay-Yee et al., 2015). Such policies include recognizing there is a problem of
unemployment in the country, analyzing how unemployment leads to poverty and developing
strategic plans that can be used to cater for the unemployment population in the nation (WHO,
2017). Considering a change in government policies, all people need to be involved. This
includes the general population, political figures, and economists. Changing government policies
on the way they handle unemployment can greatly improve the health statuses of many
Australians.
Education is directly linked with unemployment in people living below poverty lines in
Australia. Low levels of educations lead to low chances of securing a good job subsequently
leading to risks of living in poverty (AIHW, 2018). Families who have low levels of education
often are unable to educate their children and thus making them unable to secure good jobs and
the cycle repeat itself. According to Australian Council of Social service (ACOSS) poverty
report in 2011, people who had finished university had a working rate of 87%, compared with
those who had finished high school with 84%. However, high school dropouts could only secure
a job at a rate of 66 % (ACOSS, 2012). Comparing with the income rates from the same report
people with year ten qualification had a median weekly wage of 907 dollars compared to

Social Determinants of Health 10
university graduates who had 1350 dollars. Comparing the above incomes, it is obvious that
education increases incomes and employment rates (ACOSS, 2012). The government should
subsidized schools fees for people living below the poverty line in order to foster their education
levels. By doing so, this would, in turn, increase their chances of employment, income and thus
raising the poverty line to acceptable standards of living.
Creating jobs opportunities for people living below the poverty line can also help to
improve both their psychological and mental health status. This population needs to be given
equal chances with social and ethnic exclusion (WHO, 2015). Most of the individuals below the
poverty line are excluded from the job market due to discrimination and corruption. Society and
the government need to recognize them equally to those from high economic statuses and
provide them with a chance at the job market (AIHW, 2016). This, in turn, will enable them to
improve their health and living standards. Creating employment for this population should look
at both a local and international perspective. Locally, the government can create more technical
jobs that do not require a lot of knowledge and skills and thus giving them a chance for
opportunities (AIWH,2018). Internationally involve creating better tariffs that allow investors in
the country. Foreign investors create jobs and lower rates of unemployment.
Creating better houses and housing policy for people living below the poverty line can
help to reduce household related physical and mental health issues. Only a small fraction of
people with lower incomes in Australia have their own houses where majority depends on social
security and renting (AIHW,2018). Many households with low incomes are prone to have stress
when they pay over 30% of their income on housing and mortgage. In 2007, 10% of the
households or 1,104,480 in number had housing associated stress (ACOSS, 2012). Housing
impacts the ability of a person to find work or training. Cities and region with abundant of work

Social Determinants of Health 11
usually have high rent rates and thus if someone cannot afford to house, one is most probably
unable to secure jobs. Over the past twenty years, house prices have risen by 40% and income by
only 120% (ACOSS, 2012). The problems come when there are low incomes to enable them to
afford quality houses. In the same period, the population has increased and the government
seems not to have strategies that can lead to affordable housing to individuals below the poverty
line.
Conclusion
Social determinates of health are conditions in which individuals are born with, grow,
live, age, work, and the systems they found that affect health quality of life, lifespan, normal
functioning, health outcomes, and health risks. Social determinates of health are brought by poor
distribution of resources, finance and power and the usually direct and shape the way people live
their health, people social status and health inequities in a nation. Unemployment is one major
social determinant of health as it puts different individuals at health risks at which the risks
especially when unemployment is widespread. Unemployment has been associated to have an
impact on life expectancies and increases the risk for both communicable and non-communicable
diseases. The health statuses of unemployed individuals are linked with social, physical,
psychological and financial consequences. People are termed to be poor when their income after
taxation falls below levels that are considered insufficient to achieve the required standards of
living. In Australia, poverty is largely affected by differences in income levels brought
unemployment by but not just merely inequality. There is various aspect that unemployment
affects the health and life of people living below the poverty line in Australia. These include an
increase in mental conditions, poor housing, poor health-seeking behaviors, increase in health
illiteracy, and effects on early life and child development. However, various strategies can be put

Social Determinants of Health 12
in place to combat unemployment. These include a change in government policies, education,
housing development and creation of jobs opportunities without discrimination.

Social Determinants of Health 13
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