UK Measures of Unemployment
- Someone is considered to be unemployed if they are not working but actively seeking work
- They are part of the labour force
- They are part of the labour force
- A country's population is divided into the labour force and non labour force
- The labour force consists of all workers actively working and the unemployed (who are seeking work)
- Usually between the ages of 16-65
- The non labour force includes all those not seeking work e.g. stay at home parents, pensioners, school children
- Economically inactive are those people who are between 16-65 and not working or not seeking work
- Economically inactive are those people who are between 16-65 and not working or not seeking work
- The labour force consists of all workers actively working and the unemployed (who are seeking work)
- Unemployment in the UK is measured using two different approaches
- The International Labour Organisation (ILO) Survey
- The Claimant Count
The Differences Between the ILO Labour Force Survey & the Claimant Count
The ILO & UK Labour Force Survey
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The Claimant Count
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The concepts of voluntary and involuntary unemployment
- Involuntary unemployment occurs when workers are willing to work at the current market wage rates but there are no jobs available
- This type of unemployment is often associated with economic downturns, recessions, or structural shifts in industries.
- This type of unemployment is often associated with economic downturns, recessions, or structural shifts in industries.
- Voluntary unemployment occurs when workers choose to remain unemployed and reduce job offers at current market wages
- Eg. Waiting for a better job opportunity or taking a break to travel