Unemployment Measures

Question 1

What makes up the unemployed?

Answer 1

The unemployed consists of those of a working age, who are willing and able to work, actively seeking work, but do not have a job.

Question 2

What is the Labour Force Survey?

Answer 2

It is a survey that measures number of employed, unemployed, and economically inactive. The ONS will survey a sample of households to determine unemployment rate in the country.

Question 3

How is the unemployment rate calculated?

Answer 3

Unemployment rate=
Unemployed/ economically active (employed+unemployed) x100

Question 4

What is the Claimant count?

Answer 4

This is a count of the number of people claiming unemployment benefits. But this isnt the main measure.

Question 5

What are some reasons why the claimant count is not the main measure?

Answer 5

1) Difficult to compare between countries since some may not provide benefits.

2) Not everyone will claim
3) Not everyone can claim
4) Can be subject to fraud

Question 6

What are some of the problems regarding the LFS?`

Answer 6

1) Inaccurate. Since we are sampling, we would need to extrapolate. This will not be 100% accurate.

2) It can be costly to conduct, analyse and interpret the data.

3) Results may not consider discouraged workers. Known as ‘hidden unemployment’. They may have faced countless rejection.

4) Under-employed. Some people have part time jobs or 0 hour contracts. Under the LFS, they are considered as being fully employed.