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

Economics - Assignment ExampleNow, before throwing some light on the importance of government in reducing the rate of unemployment, it is crucial to shed some light on the types and methods of measuring unemployment.The definition of unemployment is quite varying. In wide-eyed words, it is a situation where people want jobs but they dont become able to find any. But, according 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 pass Survey ) definition of employment is anyone (aged 16 or over) who does at least one hours paid work in the week former to their LFS interview, or has a job that they are temporarily away 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 differe nt unemployment types exist in the veridical 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, pretend huge 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 Count This method was usually used during the eighties and 1990s. The basic thing about this method is to count those unemployed heads who are receiving unemployment benefits. The good thing is that measurement can be done by utilise administrative records, which is the reason why you dont have to suffer from sampling errors. But, it is a fact that many countries are now using different computation methods which is the reason why it is not logical to compare results of this method with other methods. Also, it provides relatively inadequate data as only tho se people who hold unemployment