Measurement of Unemployment

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

Calculating the Unemployment Rate

• 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.