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

4674 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

Why do firms in perfect competition earn normal profit in the long run


Explain why scarcity results in economic decisions being made.


What is the difference between GDP and GNI and how should I compare them?


Explain the difference between expansionary and contractionary fiscal policies


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