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.

CR
Answered by Christian R. Economics tutor

4631 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

Explain the meaning of the law of demand; distinguish between movements along and shifts of the demand curve.


Distinguish between the concepts of income elasticity of demand (YED) and cross price elasticity of demand (XED)


What are arguments in favour of protectionist policies?


Explain the impact that a fall in the world price of oil might have on aggregate supply and gross domestic product (GDP) in an economy.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences