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Unemployment

Peter Smith highlights key aspects of unemployment, which is one of the key macroeconomic indicators used to monitor the economic performance of an economy

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In line with the International Labour Office (ILO) guidelines, unemployment in the UK is measured as the number of people who are without a job, have actively sought work in the last 4 weeks and are available to start work in the next 2 weeks, or are out of work, have found a job and are waiting to start it in the next 2 weeks. This definition is used internationally, making it possible to compare unemployment rates across countries.

In the UK, the number of people who are unemployed can also be measured by the claimant count, which counts the number of people claiming benefits principally for the reason of being unemployed. Note that not everyone who is unemployed is eligible for Jobseeker’s Allowance, which helps to explain why the two measures — the ILO guidelines and the claimant count — diverge in Figure 1.

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