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Measurement of Unemployment | Economics for GCSE/IGCSE - Class 10 PDF Download

The Claimant Count & Labour Force Survey

  • Unemployment is often measured using two different approaches: The International Labour Organisation (ILO) Survey and The Claimant Count.

The Differences Between the ILO Labour Force Survey & The Claimant Count

Measurement of Unemployment | Economics for GCSE/IGCSE - Class 10

Calculating the Unemployment Rate

Measurement of Unemployment | Economics for GCSE/IGCSE - Class 10

  • The employment rate may rise even while the unemployment rate increases:
    • This scenario might occur due to heightened immigration, leading to an expansion in the working-age population.
    • Alternatively, it could stem from individuals transitioning from economic inactivity to employment.
  • Unemployment rates fail to account for hidden unemployment that occurs over the long term:
    • This situation arises when individuals actively seek employment but eventually abandon their job search, becoming economically inactive.
    • Paradoxically, this could lower the unemployment rate as fewer individuals are actively pursuing employment opportunities.
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FAQs on Measurement of Unemployment - Economics for GCSE/IGCSE - Class 10

1. How is unemployment measured in the UK?
Ans. Unemployment in the UK is measured using two main methods: the Claimant Count and the Labour Force Survey.
2. What is the Claimant Count?
Ans. The Claimant Count is a measure of unemployment that counts the number of people claiming unemployment-related benefits from the government.
3. How is the Labour Force Survey conducted?
Ans. The Labour Force Survey is a survey conducted by the Office for National Statistics to gather data on employment and unemployment in the UK through interviews with households.
4. How is the unemployment rate calculated using these measures?
Ans. The unemployment rate is calculated by dividing the number of unemployed individuals by the total number of people in the labor force and multiplying by 100.
5. Why is it important to accurately measure unemployment?
Ans. Accurate measurement of unemployment helps policymakers and economists understand the state of the economy, assess the effectiveness of labor market policies, and make informed decisions to address unemployment issues.
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