What is unemployment

The Office for National Statistics (ONS) produce official estimates of unemployment using the International Labour Organisation definition. Under this definition people aged 16 and over are unemployed if they are:

• out of work, want a job, have actively sought work in the last four weeks and are available to start work in the next two weeks; or are
• out of work, have found a job and are waiting to start it in the next two weeks.

This definition is used by most other countries, by the Statistical Office of the European Union (Eurostat), and by the Organisation for Economic Co-operation and Development.

Within the context of the supply and demand model of the labour market framework, unemployment is seen as potential labour supply. The unemployed want to supply their labour and are both seeking and are available for work. As such, they are seen as having greater labour market attachment than those, for example, who do not have a job and are not looking for one.

Unemployment data are useful for a variety of reasons. The government use unemployment along with other labour market indicators for macro-economic and labour market management. Data are also supplied to a range of international organisations such as the European Central Bank. In the social policy domain, unemployment is used as an indicator of relative hardship.

Official unemployment figures are based on the results of the Labour Force Survey (LFS). ONS regards the unemployment rate (the unemployed as a percentage of the economically active) as the headline measure. It allows comparison between different groups of people, different areas, and between different countries. It also allows unemployment to be interpreted in the context of overall changes in the population or in economic activity.

The LFS also provides more detailed information on job search activities, work preferences, previous jobs and the duration of unemployment.

Unemployment is different from the claimant count, which measures only those unemployed people who are claiming unemployment-related benefits (Jobseeker's Allowance and National Insurance Credits). The claimant count is normally the lower measure because some unemployed people are not entitled to claim unemployment-related benefits, or choose not to do so.

Unemployment figures are published every month in the labour market statistics First Release, Labour Market Trends and on Nomis®. They are also published quarterly as part of the Labour Force Survey Historical Quarterly Supplement.

Articles on unemployment also appear in Labour Market Trends.

This page last revised: Friday, 3 June 2005