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

4728 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

The supply function for the production of good A is P=50+45Q. The demand function is P= 100-5Q. Find the equilibrium price and quantity.


Explain, with the help of diagrams, the effect of an increase in the price of petrol is likely to have on (i) The market for cars. (ii) The market for coal.


Using diagrams, explain how the incidence of an indirect tax may be affected by the price elasticity of demand.


Under what conditions can a firm sell the same product at different prices?


We're here to help

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

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning