Poverty is defined as the state of being unable to fulfill basic needs of human beings. Poverty is the lack of resources leading to physical deprivation. Poor people are unable to fulfill basic survival needs such as food, clothing, and shelter. These are the needs of lowest order and assume top priority. Poor people are unknown of their lack of voice, power, and rights, which leads them to exploitation. A poor person being unable to take part in social and cultural norms leads to breakdown of social relation among the people. Poverty is mainly seen in developing and under developed nations like Nepal, Bangladesh etc. More than 25% of the population in Nepal still lives below the poverty line. All the poor countries are facing serious effects of poverty which need to be solved. The effects of poverty can be mainly categorized as unemployment, illiteracy, food security, psychological well-being, increased crime rate, child health, homelessness etc. All these effects of poverty are correlated with each other as one effects acts as a precursor for other.
Major effect of poverty is unemployment to those without land or dependable wage labor. Poor people can rarely find permanent, salaried job in the village or even in the city. Poor people engage in informal and daily wage labor with no security and low earnings. In many cases, women are the primary sources of family income, and are engaged in all types of activities such as paid domestic work as well as informal industrial