How Do We Measure Unemployment? The Truth Behind the Data

How is unemployment really measured, and what do the numbers actually tell us? In this video we unpack the key ways unemployment is measured in the UK—and why the data isn’t always as clear-cut as it seems!

We cover:

✅ The Labour Force Survey (LFS) and how it defines unemployment

✅ The Claimant Count—who is included, and why it differs from the LFS

✅ Hidden unemployment—who is left out of official statistics?

✅ The gig economy, zero-hours contracts, and underemployment—why some "employed" people still struggle

✅ Key flaws in unemployment measurement, from sampling errors to misclassification

Understanding how unemployment is measured is essential for Economics students, especially when studying macroeconomic performance, labour markets, and government policy.