/ Unemployment formula. Unemployment rate how to calculate?

The formula for unemployment. Unemployment rate how to calculate?


Often on TV we hear news aboutincrease or decrease in the level of unemployment in a particular country or city. But is it right that each of us understands what is meant? After all, the real state of affairs can be understood only by correctly realizing the value of such an indicator as the level of unemployment. The calculation formula given below will contribute to a better understanding of the issue.

Causes of unemployment

Anyway, but in any state there is a certain percentage of people who do not have a job at the moment. Even in the richest countries there is unemployment. There are a number of reasons for this.

unemployment formula unemployment rate

Any highly developed country and economy of the worldfind a place for unemployment. Perhaps, only with the idea of ​​capitalism did the Soviet people believe that in the near future everyone will have work and goods in stores will cease to be sold for money.

Unemployment can be due to a number of reasons. They can be divided into several groups:

- economic;

- political;

- social;

- personal.

The economic group of reasons can be attributed to those,which are related to the specific development of the economy of a particular region (country). If the production capacity of the state is at zero, the economy is crashing, enterprises stop, it is natural that full employment of the population is out of the question. In this case, people simply have nowhere to work.

Political reasons are based on someadministrative measures of the state on regulation of this or that sector of economy. Sometimes politicians, solving international issues, forget that they affect the lives of citizens within the country. Someone thanks to this is arranged for work, and someone loses.

The social group includesthe causes of unemployment, independent of the economic or political vector of development. They are more influenced by prestige and fashion. For example, there may be 1 thousand vacant vacancies for the position of cleaner, but because of their beliefs about the possibility of finding a more prestigious and better job, people remain unemployed at the moment.

unemployment rate formula

To the personal group of causes are those whoare related to the individual qualities of people. After all, there are those who do not want to work at all, live on benefits, drink alcohol and drugs, and make them do anything for society is simply impossible in the existing legal field.

To calculate the correct statistical dataa special formula for unemployment is used for unemployed people. The unemployment rate, which can be calculated using it, determines the degree of unemployment of the economically active population. We will discuss it further.

It is worth mentioning the following.You can calculate the unemployment rate by different ways. The formula for calculations in each method will be the same. But mainly in statistics, the unemployment rate of the International Labor Organization is used.

It is determined by the ratio of the total number of unemployed to the number of economically active population.

The unemployed are part of the labor force that may be engaged in the production of goods or services, but for some reason are not involved in these processes.

Economically active population - the total number of people who are able-bodied and may be involved in the production of services or goods.

Types of unemployment

Having calculated the unemployment rate, you need to givecorrect assessment of the results obtained. It is necessary to understand the categories of the population, as well as the types of unemployment in order to be able to analyze the results, which will be shown by the formula of unemployment. The unemployment rate, depending on the specified parameters, will differ and be of a different nature.

There are the following types of unemployment:

  1. Structural.

  2. Friction.

  3. Seasonal.

  4. Cyclical.

Next, we consider each type in more detail and find out the formulas that will help to know the level of each of them.

Structural unemployment

Structural unemployment is one ofmost common species. Its presence in the economy is associated with a constant change in market demand for any product. If the demand falls on a certain product, then the need for specialists who produce it also decreases.

unemployment rate formula

To combat this type of unemployment, it takes quite a lot of time to retrain the specialists who have lost their jobs for the new trends in demand.

The following unemployment formula is used to calculate this type. The unemployment rate of a structural type is calculated as follows:

Bstr = Kstr / ChrS * 100%, where:

Kstr - the number of structural unemployed;

Chr - total labor force.

Frictional unemployment

Frictional unemployment characterizes the levelunemployed people with certain qualifications. The growth of such unemployment is usually observed if the economy has the following problem: the closure of enterprises and the decline in production capacity occur faster than the organization of a new production. That is, people actually lose their jobs and are temporarily unable to find a job due to the lack of jobs that match their qualifications.

 unemployment calculation formula

То есть можно сказать, что фрикционная unemployment is a simple movement of labor that cannot be avoided, but it can be reduced. The main ways to reduce is the availability of the best information component in the labor market, where the public should be notified in a timely manner about the appearance of certain vacancies.

Calculate this figure will help the following formula for unemployment. The unemployment rate of a friction type is calculated as:

Bfr = Kfr / ChrS * 100%, where:

Kfr - the number of frictional unemployed.

Seasonal unemployment

Mostly associated with work that wearsseasonal nature. For example, if you went to a resort, you noticed that only in a certain season there is an increased demand and a corresponding offer for goods or services. In the mountains, tourists love to come in the winter, and the sea - in the summer. The rest of the time, cafes, shops and other businesses do not even work. At this time, their employees are either unemployed or starting to do something else.

In addition, there are many factories thatspecialize in seasonal products. For example, producers of tomato paste or any juice are tied to the ripening period of certain agricultural products. All the rest of the time, the production facilities are left without work, as well as the workers of these plants.

It is not difficult to calculate this level of unemployment. The formula is as follows:

Бс = Кс / Чрс * 100%, where:

Kc - the number of seasonal unemployed.

Cyclical unemployment

This species is associated with generally understood development cycles.economy. There is an economic rule that is constantly confirmed in all countries: if there is a period of economic growth, then there will be a period of recession.

That is, from time to time the economy of anythe state is growing, it is declining. In a period of decline in GDP, cyclical unemployment appears, which characterizes the level of unoccupied labor due to a temporary reduction in production capacity and release from work processes.

actual unemployment formula

For calculations, use the following formula for unemployment. The unemployment rate cyclical is equal to:

Бц = Кц / Чрс * 100%, where:

Kc - the number of cyclical unemployed.

Other unemployment rates

To carry out in-depth analysis, it is not enough just to know how to calculate the above figures. Often use the concept of a natural rate of unemployment.

The formula for its calculation is as follows:

Be = Bstr + Bfr.

Natural unemployment. What does the indicator mean?

What does this indicator mean? It is calculated when one wants to know what the total unemployment rate will be if the condition of full employment is met.

natural unemployment formula

That is, if everyone who wanted could findwork Accordingly, it can be seen that the natural unemployment, the formula of which is given above, presupposes the presence in the economy of only structural and frictional types of unemployment.

It can be said that this indicator shows the situation that has developed in the labor market in ideal conditions, when the entire economically active population is engaged in the production of goods or services.

Actual unemployment

Another major indicator is the actualunemployment. It is calculated as the sum of all types of unemployment indicated above, with the exception of natural. That is, the sum of structural, frictional, seasonal and cyclical - this will be actual unemployment. The formula is as follows:

BF = Bstr + Bfr + Bs + Bts.

Actual unemployment essentially reflectsthe real situation on the labor market. It can be more, equal or less than the natural rate of unemployment. The calculation formula shows that this indicator affects absolutely all types of unemployment, which means:

  1. The actual level will be higher than natural unemployment if there is a slowdown in the economy.

  2. The situation will be inversely proportional to the first, if the economy is gaining momentum and jobs appear faster than the dismissal of people from their old positions.

In fact, with a full understanding of the causes, types and factors, the formula for calculating unemployment helps to give a real assessment of employment and government work to ensure decent jobs.

unemployment formula

The unemployment rate has always characterized the state of the economy, and thanks to this indicator it can be concluded about where to go and what needs to be corrected in the economic vector of development.

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