Unemployed stopped living around southern United States (7)
I believe the answer is:
'unemployed' is the definition.
'stopped living around southern united states' is the wordplay.
'stopped living' becomes 'died' (to die is to stop living).
'around' means one lot of letters goes inside another.
'southern' becomes 's' (abbreviation).
'united states' becomes 'US' (abbreviation for the United States).
'died' going around 'sus' is 'DISUSED'.
(Other definitions for disused that I've seen before include "one's no longer employable?" , "No longer operated" , "Derelict" , "Idle" , "Neglected" .)