Business
Measuring The Jobless What are unemployment
and claimant count?
Official estimates of unemployment are produced by
ONS based upon the ILO (International Labour Organization)
definition. A separate series - the claimant count
- measures how many unemployed people are claiming
unemployment-related benefits. There is a large difference
between the two series, and although they move broadly
in line often one measure increases while the other
falls. The reason for this is simply that they measure
different things.
Unemployment is a count of jobless
people who want to work, are available to work, and
are actively seeking employment. The ILO definition
is used internationally, so comparisons between countries
can be made, and it also allows for consistent comparisons
over time. Unemployment is calculated using data from
the Labour Force Survey (LFS), so it is subject to
sampling differences.
The claimant count measures
only those people who are claiming unemployment-related
benefits (Jobseeker's Allowance). It is always the
lower measure because some unemployed people are not
entitled to claim benefits, or choose not to do so.
Benefits rules vary over time and between different
countries, so it is more difficult to make comparisons.
The claimant count comes from the administrative records
of Jobcentre Plus (formerly Employment Service), and
is available earlier than the LFS-based unemployment
data.
When employment is high the
gap between unemployment and the claimant count tends
to widen, as some jobless people who were not previously
looking for work start to do so. By actively looking
for work they may become classified as unemployed
under the ILO definition. However they do not feature
in the claimant count unless they also begin to claim
benefits.
The difference between the two
measures is wider for women than for men. Currently
fewer than half of unemployed women claim unemployment-related
benefits compared with around three quarters of men.
Unemployment data are available
in their current format back to 1984 (non-seasonally
adjusted and seasonally adjusted). The present seasonally
adjusted claimant count series goes back to 1971,
and is adjusted to allow for significant changes to
benefit rules.