Measuring Unemployment Flashcards

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What does 'unemployed' mean in economics?

You do not have a job, you can work, and you are actively looking for work.

What is the labour force?

All people who are employed plus those who are unemployed and seeking work.

How do you calculate the unemployment rate?

Unemployed ÷ labour force × 100. Example: 1.5 million out of 30 million = 5%.

What is the Claimant Count?

A count of people claiming unemployment-related benefits while able to work and seeking work.

What is the Labour Force Survey (ILO measure) of unemployment?

A household survey that counts people with no job who are available to start and have looked for work in the last four weeks, or are waiting to start a job.

Why can the Claimant Count miss some unemployed people?

Not everyone who is unemployed claims benefits, and benefit rules can change who is counted.

What is one advantage of the Claimant Count?

It is quick, low cost, and updated monthly, so it is very timely.

What is one advantage of the Labour Force Survey (ILO) measure?

It uses an international definition and includes people not claiming benefits, so it is broader.

Why can the Labour Force Survey be inaccurate at times?

It is based on a sample, so there can be sampling error or wrong answers.

Who are 'economically inactive', and are they counted as unemployed?

People not working and not looking for work (for example students, carers, retirees). They are not counted as unemployed.

Why use the unemployment rate rather than the number unemployed to compare areas?

The rate adjusts for the size of each area’s labour force, so it is fairer.

What is underemployment, and does it show in the unemployment rate?

Having a job but wanting more hours. It does not show in the unemployment rate.