Discuss the Reliability of Measuring the Unemployment by Claimant Count and Labor Force Survey

683 Words Oct 1st, 2011 3 Pages
Claimant count and labor force survey are the basic two ways to measuring countries unemployment. Neither one of these two measurements are perfect so now I am going to have a discussion about the reliability of these two measurement.
Claimant count is based on counting the number of people who claim unemployment related benefits (the majority of whom claim Jobseeker allowance (JSA)) and they are willingly and able to work. The strength of this method is cheap and quick, the statistical department just needs to use the data in the computer to make a claimant count [5]. But it has some serious weaknesses, first it can only give the number of people who do claim jobseeker allowance but no qualitative descriptions like if they are really
…show more content…
The labor force survey may need many time to complete and put the datas in order and also it may has delays so we can only use it on a very large scale of measurement like annually report used for comparing the unemployment with other countries or offering the datas to ILO to have the data analyzed. But we can use the claimant count to measure the unemployment rate in a short period because it has no delays while delays are really serious problem for tactical decision.
The reliability of the two ways are different on different measuring scales. Once the unemployment are used to make strategic decision the reliability of the labor force survey are better than of the claimant count for it is more accurate and using the international standard. The reliability of claimant count is better during the process of making the tactical decision for it has no delay and easy to collect.

Reference
1."LabourForceSurvey".OfficeforNationalStatistics.http://www.statistics.gov.uk/ssd/surveys/labour_force_survey.asp. Retrieved 2008-12-07.
2."LabourForceSurveys".InternationalLabourOrganization.http://www.ilo.org/dyn/lfsurvey/lfsurvey.home. Retrieved 2008-12-07.
3 Lipsey, Richard G; Chrystal, Alec (2007). Economics. Oxford: Oxford University Press. p.569. ISBN0199286418.

Related Documents