Economics Assignment Example | Topics and Well Written Essays - 1500 words

Economics - Assignment fontNow, before throwing some light on the importance of government in reducing the swan of unemployment, it is significant to shed some light on the types and methods of measuring unemployment.The definition of unemployment is quite varying. In simple words, it is a situation where people want jobs but they dont become able to find any. But, harmonise to the International Labour Organisation (ILO), if a person is working at least for an hour a week, he is considered employed. Here, definition of employment will help understanding what unemployment is all about.The LFS( Labour Force regard ) definition of employment is anyone (aged 16 or over) who does at least one hours stipendiary work in the week prior to their LFS interview, or has a job that they are temporarily by from (e.g. on holiday). Also included are people who do unpaid work in a family business and people on government supported employment training schemes, in line with ILO definitions 1.As different unemployment types exist in the real world, it is crucial to use right methods to measure those different types. Unemployment rate is the best way to measure the extent of unemployment in any country. Economists all over the world, give Brobdingnagian importance to the measures of unemployment rate for designing the policies of economic development. The most widely used measure of unemployment rate is mentioned below2Claimant itemise This method was usually used during the 1980s and 1990s. The basic thing about this method is to count those laid-off heads who are receiving unemployment benefits. The good thing is that measurement can be done by using administrative records, which is the reason why you dont have to suffer from sampling errors. But, it is a fact that umpteen countries are now using other computation methods which is the reason why it is not logical to correspond results of this method with other methods. Also, it provides relatively inadequate data as o nly those people who receive unemployment