Unemployment Flashcards
Define unemployment
A situation where a person does not have a job but is actively seeking work
Define unemployment rate
Those who are out of work, but are actively seeking work as a percentage of workforce/economically active
Define workforce
Those who are in work or actively seeking work
Define population of working age
Men and women aged between 16-64
Define participation rate
The percentage of the population of working age who are economically active
How to work out the unemployment rate
Unemployed
____________________ x 100
Economically active
How to work out the participation rate
Workforce
____________________ x 100
Pop of working age
What does the claimant count include
Claiming unemployment - related benefits (JSA) at benefit offices on the day of the monthly count:
What does the claimant count exclude
Anyone on government training schemes, who doesn’t register, under 18, someone who doesn’t qualify e.g. savings too high, someone who works part time but want full time
What is the labour force survey
Interviews 33,000 households per quarter, asks about employee status and nature of main job, people are unemployed if they are available, able and willing to work but don’t have a job so an individual has to be seeking work. Consistent with ILO, international Labour organisation
Who does the Labour force survey
Office of national statistics (ONS)
How often are the LFS and claimant count collected
Claimant count - monthly
LFS - quarterly
What are the criteria for LFS and claimant account
LFS: out of work but actively seeking work
Claimant count: eligible to claim unemployment related benefits
What is the official measure of unemployment
LFS
What are the measurement problems
Changes to the h unemployment statistic
Hidden unemployment
Both figures are overestimates due to fraudulent claims
Claimant count underestimated unemployment
The LFS may be unrepresentative
