Understanding Unemployment: Types, Causes, and How to Read the Data
Learn what unemployment measures, the different types of unemployment, what drives the unemployment rate, and how to interpret unemployment data by country on WecoBook.
What Is Unemployment?
Unemployment measures the share of people in the labor force who are without a job, actively seeking work, and available to start.
The unemployment rate is calculated as the number of unemployed people divided by the labor force (employed plus unemployed), expressed as a percentage.
Types of Unemployment
Economists distinguish several types of unemployment.
- Frictional unemployment
- Structural unemployment
- Cyclical unemployment
- Seasonal unemployment
Why Unemployment Matters
High unemployment means lost output and lower household incomes.
How to Interpret Unemployment Data on WecoBook
WecoBook tracks unemployment rates by country.
Understanding Unemployment: Types, Causes, and How to Read the Data - 常见问题
What is a healthy unemployment rate?
Many economists consider 4-6% a normal range for developed economies.
Is the unemployment rate the same as the share of people without jobs?
No. The unemployment rate only counts people in the labor force who are actively seeking work.
Where does WecoBook get its unemployment data?
From national statistics offices, the ILO, the OECD, and the World Bank.