Theories based on an economic framework suggest that there is a causal link between unemployment/underemployment and crime. Economic theories assume that people turn to crime because they cannot support themselves through legal activities. The sociological framework posits that the association between crime and unemployment is a result of the reduced costs of criminal activities: the unemployed and underpaid have less to lose than those with sufficient incomes. Research has not consistently provided support for these positions. While there is consensus that economic factors play a role in crime rates, there is little consensus as to the dimensions and extent of the role. Statements presented before the House Subcomittees on Crime and on Employment Opportunities further examine the crime/employment relationship and its implications for Federal policy and programming. An executive summary outlines the effects of recession on illegal activity and suggests that a globally effective policy for decreasing the level of criminal activity is one that provies satisfying, full-time employment at reasonable wages. Research using juridictional and individual data on the employment/crime relationship is provided, together with a review of the programmatic literature and analyses of the underground economy. On the basis of these reviews, the effects of a variety of economic factors on different types of crime are discussed and recommendations are made for future research. Results of cross-sectional, individual, and time-series research are presented to elucidate the labor market-crime link. Also reviewed are empirical studies of the effects of economic incentives on recidivism. A final article examines the contributions of unemployment to crime and of crime to unemployment and makes recommendations for breaking the unemployment-crime cycle. A list of 23 additional readings is provided.