Measuring the Economy: Employment and Unemployment

9.2 of The Economy 1.0 & The Economy #5

Who are the unemployed?

-Not in work during a reference period (4 weeks) meaning no paid employment/self-employment

-Is available for work

-Is seeking for work, meaning they proactively are finding paid employment or self-employment

Make a flow chart from the general population to the employed/unemployed.

-Note that the population of working age is usually 15-64.

-Out of the labour force means one is not in work, or not seeking any work.

What is the participation rate?

-Simply the labour force/population of working age

-In the UK, its around 79%

What is the unemployment rate?

Simply the unemployed / labour force

In the UK, its around 5%

What is the employment rate?

Simply the employed / population of working age