A new national report released by the Urban Institute and First Focus shows that 1 in 10 children in North Carolina lived in a family with at least one unemployed parent in 2012, a percentage that has more than doubled since the start of the Great Recession in 2007.
As the report highlights, the effects of parental job loss on children can be severe. Economic stress links to parents’ responses to their children and children’s wellbeing. And studies of unemployment and family income show that poverty increases sharply among the long-term unemployed. The adverse effects of children living in poverty can last well into adulthood.
The report also points to the importance of the safety net.
Unemployment insurance can cushion the adverse effects of unemployment – and help stabilize the economy during economic downturns – by providing families with cash benefits to offset some of their lost wages.