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Unemployment and poverty are directly related to each other. That is, poverty increases with an increase in the unemployment level. This is because unemployed people are not able to support their families and educate their children. This makes the entire family dependent on the nation, and hence, an increase in unemployment level leads to an increase in the number of dependents on the working population. The per head consumption expenditure will tend to decline, implying an increase in people lying below the poverty line. The government initiated various programmes to alleviate poverty by generating employment opportunities to the poor such as Swarna Jayanti Shahari Rozgar Yojana (SJSRY), Prime Minister's Rozgar Yojana (PMRY) and Swarna Jayanti Gram Swarozgar Yojana (SGSY). Thus, there is a positive and direct relationship between poverty and the level of unemployment. 

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