MEASURING UNEMPLOYMENT

Type of measurement:
International Labour Organisation (ILO)
Claimant Count
INTERNATIONAL LABOUR ORGANISATION

 Conduct a Labour Force Survey (LFS) that is

carried out every month

ILO also defines unemployment as:

 people who want a job but cannot find a job
 people who have actively sought work in the last 4 weeks
and are available to start work in the next 2 weeks
 people who have found a job and are waiting to start in
the next 2 weeks (Frictional Unemployment)
 CLAIMANT COUNT
 Includes people who are eligible to claim the Job
Seeker’s Allowance (JSA)
 Usually lower than ILO count
TASK

Go to the DSEC website and

look for the Employment
Survey of May – July 2022
TASK

1. Unemployment rate (%)

2. Labour force participation rate (%)
3. Underemployment rate (%)
4. Total Employment by Industry
5. Comment on the trend of Unemployment rate (%),
Labour force participation rate (%) and
Underemployment rate (%)
 DEFINITIONS AND FORMULAS
◆Working age population: population aged between 16 and 64

◆Labour force: sum of employed and unemployed population

𝑙𝑎𝑏𝑜𝑢𝑟 𝑓𝑜𝑟𝑐𝑒
◆Labour force participation rate:
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝑎𝑔𝑒 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛

𝑢𝑛𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛
◆Unemployment rate:
𝑙𝑎𝑏𝑜𝑢𝑟 𝑓𝑜𝑟𝑐𝑒
 MEASURING UNEMPLOYMENT (ILO DEF.)
• Anyone receives one hour’s paid work
• People who are on government-supported training schemes
In
employment • People who do unpaid work for their family’s business

• Not actively looking for jobs

• The need to look after elderly or children
Economically
Inactive • Early retirement

• Want a full-time job but have to accept a part-time job

Under-
employment
 EXAMPLES OF EMPLOYMENT STATUS
Example ILO Classification
Jason worked 48 hours as a technician every week 1.

Carol is doing a part-time job at a restaurant for around 2.

15 hours a week, she want to work as a full-time worker

Mrs Wong looks after her daughter at home. She does not 3.
look for a job.

Ivan receives government-supported training schemes about 4.

car repairing for 35 hours a week.

Kelvin sent application letters to different companies in the 5.

last four weeks. He is available to work immediately.
 EXAMPLES OF EMPLOYMENT STATUS
Example ILO Classification
Jason worked 48 hours as a technician
every week In employment
Carol is doing a part-time job at a
restaurant for around 15 hours a week, underemployment
she want to work as a full-time worker

Mrs Wong looks after her daughter at

home. She does not look for a job. Economically inactive
Ivan receives government-supported
training schemes about car repairing for In employment
35 hours a week.
Kelvin sent application letters to different
companies in the last four weeks. He is Unemployed
available to work immediately.
 1. Cyclical or demand
deficient unemployment
2. Structural unemployment
◼Sectorial unemployment
◼Technological
unemployment
◼Regional unemployment
3. Seasonal unemployment
4. Voluntary unemployment
TYPES OF 5. Frictional unemployment
UNEMPLOYMENT
TYPES OF UNEMPLOYMENT
- 1. CYCLICAL UNEMPLOYMENT 週期性失業
 Involuntary unemployment
 Demand deficient unemployment
 Downturn or recession → lack of demand for goods
and services → closures of businesses →
unemployment rises
 TYPES OF UNEMPLOYMENT
- 2. STRUCTURAL UNEMPLOYMENT 結構性失業
 Sectorial unemployment
 Decline in the industry → firms closed down →labour unable
to find other jobs→↑unemployment
 Technological unemployment
 Firms use more capital instead of labour →↑unemployment
 Eg: ATMs in banking
 Regional unemployment
 labour unable to move from high to low unemployment
regions (geographical immobility) → ↑unemployment
 Eg: housing, family ties etc.
TYPES OF UNEMPLOYMENT
- 3. SEASONAL UNEMPLOYMENT 季節性失業

 Some people are unemployed at a certain time of a

year
 Eg: Mooncake producer
➔ Unemployed when the season ends
TYPES OF UNEMPLOYMENT
- 4. VOLUNTARY UNEMPLOYMENT自願性失業

 Individual decision
 Not satisfied with the wages
 Not like the idea of work
 TYPES OF UNEMPLOYMENT
- 5. FRICTIONAL UNEMPLOYMENT 摩擦性失業
 Short-term unemployment
 Take time to move from one job to another
 E.g. new job is not due to start / extended break
between jobs
CONSOLIDATION PRACTICE –
UNEMPLOYMENT