Unemployed

Unemployed is a term used in labor economics to describe people who are without paid work and are currently available to work and actively seeking employment. In most statistical systems, the unemployed are counted as part of the labor force, which also includes employed people. Those not seeking work or unavailable to work are classified as not in the labor force.

Unemployment is categorized to reflect different causes: frictional unemployment from normal job-search transitions; structural unemployment from a mismatch between skills and jobs or long-term changes in the economy; cyclical unemployment tied to business cycles; and seasonal unemployment due to predictable annual patterns.

Measurement and data: Unemployment rate is the share of the labor force that is unemployed. Statistics rely on household surveys and defined criteria for seeking work and availability. The labor force participation rate measures the share of the working-age population that is either employed or unemployed. Data availability and definitions vary by country but follow common international standards.

Causes and consequences: Unemployment can be caused by recessions, technology-driven shifts, globalization, or skill gaps. Persistent unemployment can reduce household income, raise poverty and inequality, and affect long-term earnings and social well-being.

Policy responses: Governments use unemployment insurance or income support, job-search assistance, and retraining programs. Macroeconomic policy affects unemployment through demand and investment. Active labor market policies aim to reduce duration of unemployment and improve match between workers and jobs.

Demographics and scope: Unemployment rates often vary by age, education, and region and can be higher among youth, low-skilled workers, or marginalized groups. In many developing economies, informal work and underemployment complicate the picture. Unemployment is a key indicator of economic health and policy effectiveness.