Measures of unemployment

• There are two measures used.

  LFS (Labour Force Survey)

  Claimant Count
• Claimant Count

  A UK only measure that measures the number of people claiming benefits on a particular day per month.
• ILO LFS (Labour Force Survey)

  LFS is the government's official measure of unemployment based on a survey consisting of 40,000 UK households: it finds out about their economic activity or inactivity.
• The Claimant Count is unreliable as it depends on people claiming JSA (job seekers allowance), and many of the "unemployed" are not eligible for JSA.
• Claimant Count excludes:

  • anyone aged 16-18
  • those LOOKING FOR PART-TIME JOBS instead of full-time.
  • those who don't claim out of SHAME
  • 18+ in FULL-TIME EDUCATION
• Claimant Count includes:

  • those eligible for JSA
  • or Universal Credit equivalent to income-based JSA
• LFS excludes:

  • people claiming income-based benefits
  • anyone not in the 40,000 household sample.
• The Claimant Count measure of unemployment can be overestimated

  • people in full time jobs making fraudulent claims for JSA
• The Claim Count measure of unemployment can be underestimated by

  • people who claim JSA but don't show that on the survey
• Positives of ILO Labour Force Survey


  • LFS is more accurate
  • the figures are higher
  • it can be compared internationally.
• unemployed

  • working age (16-64)
  • willing and able to work within the next two weeks
  • actively seeking work
  • without a job
• working age

  those aged 16 to 64 in the UK.
• employment


  the number of people of working age and in work.
• The unemployed are ACTIVELY SEEKING a job, but don't have one.
• economically inactive

  • working age
  • not in work
  • not seeking a job
• are those working part-time considered economically active and why?

  No

  * only considered employed if working full-time

  * They would be considered underemployed instead of employed if seeking full-time work.
• Hidden Unemployment:

  • working age population
  • not actively seeking work
  • willing to take the right job
  • underemployed (part-time is not employed)
• Economically Active:

  • employed + unemployed
  • those in work
  • or actively seeking (past 4 weeks)
  • and willing to work (next 2 weeks)