Measuring Unemployment in the UK
- Claimant Count Method.
This is the official govt method of calculating unemployment. It counts the number of people receiving benefits (Job Seekers allowance) This is quite easy to collect.
Problems with Claimant count
- The govt has often changed the criteria (30 times since 1979) for those who are eligible for benefits, usually this has been to reduce the claim. This makes it difficult to compare.
- The claimant count excludes:
- people over 55,
- people under 18,
- Any one on a govt training schemes,
- Married women looking to return to work
- Those looking for part time work and not full time work
- Some people may claim benefits whilst still working in the “black Market"
- The Labour Force Survey
This is compiled using the ILO criteria of comparing unemployment. It is a survey asking 60,000 people whether they are unemployed and whether they are looking for a job.
- It includes some people not eligible for benefits
- Good for international comparisons.
- It could be subject to sampling errors and may not be truly representative
- Difficult to decide whether somebody is sick or actively seeking work
However some problems
Related
Revision Notes on Unemployment
Which is Correct? - Monetarist or Keynesian View
Unemployment Essays
- Explain what is meant by Natural Rate of Unemployment?
- What Can Cause Natural Rate of Unemployment to Change over time?
- Should the Main Macro Economic Aim of the Government be Full Employment?
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