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Measurement |
The most common method of measuring unemployment was developed in the United States in the 1930s; it is followed by many other countries on the recommendation of the International Labour Organization. In a monthly survey of a sample of households representing the entire civilian population, information is obtained about the activity of each person of working age. To ensure precision and ease of recollection, the interviewers ask what people were doing in a single week. A person who did any work during that week for pay or profit, worked 15 hours or more as an unpaid worker in a family business, or had a job from which he or she was temporarily absent, is counted as employed. A person who was not working but was looking for work or was on a temporary lay-off and available to take a job is counted as unemployed. The number of unemployed is then divided by the number of people in the civilian labour force (that is, the sum of the employed and the unemployed) in order to calculate the unemployment rate. In some countries, instead of a special survey, unemployment estimates are developed from data on the number of people who are looking for work through the public employment offices or the number receiving unemployment compensation payments.
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