What is the official definition of unemployment?
The unemployed are those people able, available and willing to work at the going wage but cannot find a job despite an active search for work
How is unemployment measured?
The Claimant Count measure includes people who are eligible to claim the Job Seeker's Allowance (JSA). The data is seasonally adjusted to take into account predictable seasonal changes in the demand for labour.
The Labour Force Survey counts those who are without any kind of job including part time work but who have looked for work in the past month and are able to start work immediately. The figure includes those people who have found a job and are waiting to start in the next two weeks.
Are we measuring unemployment accurately?
1 / Discouraged workers
2 / The Economically Inactive – these are people who are not actively looking for work – some of the reasons include:
3 / Under-employment: In many countries data may ignore the extent of under-employment, for example people who want full-time work but have to settle for a part-time job. In many lower-income countries the quality of the labour market data may be poor causing published figures to be inaccurate.
Have you seen the tutor2u YouTube channel? Subscribe now and never miss a revision video!
Add these revision guides and worked answers to your essential revision resources for AS & A2 Economics exams this summer. Our revision guides are brand new and bring your tired old...