Unemployment Types and Measurement — Definition

Definition

Unemployment describes the condition of people classified as without work and seeking or available for it under a specified statistical framework. Its measurement depends on the population covered, activity definitions and reference period.

The unemployment rate divides unemployed persons by the labour force, which includes employed and unemployed persons; it does not divide them by the entire population. Different types describe possible causes, such as job search, skill mismatch, deficient demand or seasonality.

The rate must be read with participation, employment and work-quality indicators because low measured unemployment can coexist with inadequate hours, low earnings or withdrawal from the labour force.