Explain three difficulties economists face when they try to measure unemployment accurately.

Unemployment, while useful in some cases, is inherently flawed as a metric for socio-economic progress. Official unemployment statistics fail to take into account the issue of hidden unemployment, defined as individuals who drop out of the labour force because they are discouraged from looking for work. This issue can be significant in some countries, and the same is true for underemployment - defined as part-time workers who would wish to be full-time. Finally, the unemployment metric is an average across the labour force, and thus does not account for disparities between groups within the macroeconomy.

Answered by Christian R. Economics tutor

4402 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

Outline the differences between the GDP, real GDP and green GDP.


Explain the concept of price elasticity of demand? How does one calculate it? What is the relationship between price elasticity of demand and firms’ total revenue?


Using a price ceiling diagram, analyse the impact a maximum price might have on the market for food.


What are causes of exchange rate fluctuations?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences