Millions more people in Britain are without a job than shown by official unemployment figures, according to a study that suggests the jobless rate should be almost three times higher.
According to research from the Organisation for Economic Co-operation and Development (OECD) and the Centre for Cities thinktank, large levels of “hidden” unemployment in towns and cities across Britain are excluded from the official government statistics.
The study found that more than 3 million people are missing from the headline unemployment rate because they report themselves as economically inactive to government labour force surveys, saying that they believe no jobs are available.
Unemployment is not having a job and desiring one sufficiently to go look for one.
Not economically active is not desiring a job sufficiently to go look for one.
We collect figures on this:
Claiming that people without a job are unemployed is wrong. Because our definition insists that they must desire one sufficiently to be looking for one.
Worth noting two other things here. Even if we accept that definition being used, it’s still true that the level of such unemployment is the lowest it’s ever been. Because that employment to population ratio is higher than since we started measuring it.
That is, we’re getting the labour market right even by this critique.
Oh, and from the report:
While the UK has one of the lowest levels of economic inactivity across the OECD
We’re getting the labour market right even by the standards of this report……