Unemployment

Statement

Unemployment refers to the situation where people in the labour force, who are willing and able to work, are unable to find employment.

Notes

The definition has three conditions, all of which must hold: a person must be able to work (of legal working age and physically and mentally able), willing to work (actively looking for a job), and unable to find employment. It therefore excludes anyone not in the labour force — children, retirees, and those who choose not to seek work. Unemployment is reported either as an absolute count or as a rate:

$\text{unemployment rate} = \frac{\text{number of unemployed}}{\text{total labour force}} \times 100\%$

The three forms examined — by their cause rather than their severity — are set out in the types of unemployment, and the effects on each agent are catalogued in the consequences of unemployment.