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Yes, many homeless people suffer from mental illness and are on the streets or in shelters because they're unable to hold a job. Most are off medication and might function better if they were able to maintain contact with mental health professionals. In the past (prior to the late 1970s) these people would receive custodial care in state mental hospitals, but the deinstitutionalization movement and funding cuts for hospitals have left them without a stable support structure.

Be cautious about generalizing beliefs about mental illness to the entire homeless population, however. Other reasons for homelessness include unemployment, lack of affordable housing, general financial problems, family issues, drug and alcohol addiction, etc. For the majority of these people, homelessness is a temporary situation.

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