The formula for unemployment. Unemployment rate how to calculate?

Often on television, we hear news about the increase or decrease in the unemployment rate 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.

Any highly developed country and the economy of the world find 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 that 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 any government measures to regulate a particular sector of the 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 includes the causes of unemployment, independent of the economic or political development vector. 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.

To the personal group of reasons are those that are associated with 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 statistics for non-working people, a special formula for unemployment is used. The unemployment rate, which can be calculated with its use, 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 of calculations in each method will be different. 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.

Unemployed people are part of the workforce that can be engaged in the production of goods or services, but for whatever reason is not involved in these processes.

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

Types of unemployment

Calculating the unemployment rate, you need to give a correct estimate of the results obtained. It is necessary to understand the categories of the population, as well as types of unemployment for the possibility of analyzing the results, which will show the formula for unemployment. Depending on the parameters mentioned, the unemployment rate will differ and be of a different nature.

The following types of unemployment can be identified:

1. Structural.

2. Frictional.

3. Seasonal.

4. Cyclic.

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

Structural unemployment

Structural unemployment is one of the most massive types. Its presence in the economy is associated with a constant change in market demand for some products. If demand falls on a certain commodity, then the need for specialists who produce it also decreases.

To combat this type of unemployment, it takes quite a lot of time to retrain the job-dead specialists for new trends in demand.

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

Bstr = Kstr / Chrs * 100%, where:

Kstr - the number of structural unemployed;

Chrs is the total labor force.

Frictional unemployment

Frictional unemployment characterizes the level of unemployed people who have a certain qualification. Usually there is an increase in such unemployment 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 temporarily can not find a job because of the lack of jobs corresponding to their qualifications.

That is, we can say that frictional unemployment is a simple movement of the workforce, which can not be avoided, but it is possible to reduce its level. The main ways of reducing is the availability of the best information component on the labor market, where the public should be notified in time about the appearance of certain vacancies.

Calculate this figure will help the following formula for unemployment. The unemployment rate of the frictional form is calculated as follows:

Bfr = Kfr / Chrs * 100%, where:

Kfr - the number of frictional unemployed.

Seasonal unemployment

It is mostly associated with work that is seasonal. For example, if you went to a resort place, 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 like to come in the winter, and on the sea - in the summer. In the rest of the time, cafes, shops and other businesses do not even work. At this time, their employees either sit without work, or start doing something else.

In addition, there are many factories that specialize in seasonal products. For example, manufacturers of tomato paste or any juices are tied to the period of maturation of certain agricultural products. All the rest of the time the production capacity is left without work, as well as the workers of these plants.

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

Bc = Kc / Chs * 100%, where:

Кс - number of seasonal unemployed.

Cyclic unemployment

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

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

The following formula for unemployment is used for calculations. The unemployment rate is cyclical:

Bc = Кц / Чрс * 100%, where:

Кц - the number of cyclical unemployed.

Other indicators of unemployment

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

The formula for his calculation is as follows:

Be = Bst + Bfr.

Natural unemployment. What does the indicator show?

What does this indicator say? He is counted when they want to know what the overall unemployment rate will be if the condition of full employment is met.

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

We can say that this indicator shows the situation that has developed in the labor market in ideal conditions, when all economically active population is engaged in the production of goods or services.

Actual unemployment

Another key indicator is actual unemployment. It is calculated as the sum of all types of unemployment indicated above, except for 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 + Bq.

Actual unemployment essentially reflects the real state of affairs in the labor market. It can be greater, equal to or less than the natural rate of unemployment. The formula of calculation shows that this indicator affects absolutely all types of unemployment, and therefore:

1. The actual level will be higher than natural unemployment in the event that the economy is experiencing a slowdown in development rates.

2. The situation will be inversely proportional to the first if the economy is picking up pace and jobs appear faster than people are firing from their old posts.

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

Always the unemployment rate characterized the state of the economy, and thanks to this indicator it is possible to draw a conclusion about where to strive further and what needs to be corrected in the economic development vector.