Unemployment Types and Measurement — Prelims Strategy

Prelims Strategy

Write the denominator before inserting figures. UR uses the labour force; LFPR and WPR use the relevant population. If a question provides 1,000 people,600 in the labour force and 60 unemployed, UR is 10%, not 6%. The 6% figure uses the population denominator and answers another question.

Check whether people move into employment or outside the labour force. If unemployed people stop satisfying the labour-force definition while employed numbers stay unchanged, UR can fall without job creation. Use WPR and LFPR to identify that mechanism. Do not assume the direction of one rate is sufficient evidence of improvement.

Keep usual status and current weekly status attached to 365-day and seven-day reference periods. Read age and geographic coverage before comparing estimates, particularly around the 2025 redesign. For types, connect the example to its cause: search, mismatch, demand or season. Disguised unemployment is not automatically added to the official unemployed count because those workers may already be classified as employed.