Measuring Unemployment

• What are the two main measures of unemployment in the UK?

  The claimant count and ILO Labour Force Survey
• What is the claimant count?

  It counts people claiming unemployment benefits
• How does the ILO define unemployment?

  Not working, seeking work, and available to start
• What is Job Seeker’s Allowance (JSA)?

  A benefit for people looking for work
• What is the significance of the welfare state in the UK regarding unemployment?

  It allows people to claim benefits while job hunting
• What percentage of the UK Government's budget is spent on JSA?

  Less than 1%
• What factors determine how much JSA a person is entitled to?

  Age, income, NI contributions, and savings
• What is the maximum savings amount to qualify for JSA?

  £16,000
• What conditions must be met to continue receiving JSA?

  Must be seeking work and follow DWP conditions
• How often is the claimant count calculated?

  Monthly
• What are some problems with using the claimant count to measure unemployment?

  Strict eligibility criteria and stigma attached
• Who cannot claim JSA?

  Under 18s and full-time students
• What is the Labour Force Survey (LFS)?

  A quarterly survey measuring unemployment
• How many households are surveyed in the LFS?

  50,000 households
• What is the ILO's definition of unemployed individuals?

  Without a job, seeking work, and available
• Why might the ILO estimate of unemployment be higher than the claimant count?

  More people are eligible under ILO's definition
• What is the difference between unemployment and under-employment?

  Unemployment is actively seeking work; under-employment is not
• What can long-term unemployment lead to?

  Mental health problems and economic inactivity
• What is under-employment?

  Working in jobs that do not utilize skills
• How can under-employment affect unemployment statistics?

  It may mask the true state of labor utilization
• What are the effects of unemployment on various sectors?

  • Consumers: Reduced spending power
  • Firms: Lower productivity and profits
  • Workers: Job insecurity and stress
  • Government: Increased welfare costs
  • Society: Higher crime rates and social issues
• What are the differences between the claimant count and the ILO's Labour Force Survey?

  • Claimant count: Based on actual benefit claims
  • ILO: Based on a sample survey of households
  • Claimant count: Monthly data collection
  • ILO: Quarterly data collection
  • Claimant count: May miss eligible unemployed
  • ILO: Includes more eligible individuals
• What are the distinctions between unemployment and economically inactive individuals?

  • Unemployment: Actively seeking work
  • Economically inactive: Not seeking work (e.g., retirees)
  • Unemployment: Willing and able to work
  • Economically inactive: May claim long-term benefits