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

4770 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

What are the factors affecting Cross-Price Elasticity?


What is the difference between fiscal and monetary policies?


Explain the impact an increase in cost of productions might have on the market price and output of a good


How would you explain, in your own words, the concept of "Decreasing Returns to Scale"?


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