Discuss the Reliability of Measuring the Unemployment by Claimant Count and Labor Force Survey

Topics: Unemployment, International Labour Organization, Economics Pages: 2 (671 words) Published: September 23, 2011
Claimant count and labor force survey are the basic two ways to measuring countries unemployment. Neither one of these two measurements are perfect so now I am going to have a discussion about the reliability of these two measurement. Claimant count is based on counting the number of people who claim unemployment related benefits (the majority of whom claim Jobseeker allowance (JSA)) and they are willingly and able to work. The strength of this method is cheap and quick, the statistical department just needs to use the data in the computer to make a claimant count [5]. But it has some serious weaknesses, first it can only give the number of people who do claim jobseeker allowance but no qualitative descriptions like if they are really willingly to seek jobs, some people are just not willingly to work. And some people who are under or over the standard age of labor forces are involved like old men and teenagers, they are searching for jobs but actually they are not a part of the labor force. Also there are some regions in the world like Hong Kong which have not developed such a completed welfare system so the claimant count cannot work so well. Labor Force Surveys are statistical surveys conducted in a number of countries designed to capture data about the labor market. All European Union member states are required to conduct a Labor Force Survey annually.[1] Labor Force Surveys are also carried out in some non-EU countries.[2] They are used to calculate the International Labor Organization (ILO)-defined unemployment rate.[3] The ILO agrees the definitions and concepts employed in Labor Force Surveys.[4]The advantage are that it is thought by many to give a more accurate measure most commonly used when making international comparison. It also collects information about the labour market, such as the qualification of potential workers and how many people are seeking part time job. The disadvantages are that the information is costly to compile and is subject to...
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