How to calculate unemployment
The number of unemployed in the country and, accordingly, the unemployment rate is determined in two different ways. The first of these is based on the registration of the unemployed in official bodies. Only those who applied to the relevant state, municipal or public service (abroad it is the labor exchange, in our country - the Federal Employment Service), receive the status of unemployed. These people are registered by the state accounting authorities and thus are taken into account by official statistics.
The second method is based on the methodology developed by the World Labor Organization (ILO), according to which it is not so important how exactly the unemployed are looking for a job (contacting the employment service or not), but what is really looking for it is (not for visibility ). At least, if he has been doing this for the last four weeks.
The second method uses selective sociological surveys of households. At the same time, statistical error is unavoidable, but, nevertheless, this method provides much more reliable and accurate information about the real number of people employed in the economy and the real number of unemployed, especially in countries where many unemployed people do not really want to register, register.
Thus, to calculate the unemployment rate (u), it is necessary to calculate the percentage ratio of the total number of unemployed to the total economically active population, in other words, the labor force.
The calculation is quite simple; for this, use the following formulas:
u = U / LF = U / E + U,
where u is the unemployment rate, U is the unemployed, E is the employed population, NLF is the economically inactive population, LF is the economically active population (labor force), and N is the total population of the country.