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Unemployment economics help

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    Why does the claimant count come higher compared to the ILO measure during times of recessions?
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    (Original post by fg(x))
    Why does the claimant count come higher compared to the ILO measure during times of recessions?
    During times of recessions, very large amounts of people become unemployed and so begin taking unemployment benefits, thus leading to the claimant count increasing as there will be more people ''claiming' Job Seekers Allowance (JSA), for example. The reason for it potentially being higher than the ILO measure (known as the labour force survey) during recessions, is because some people who have become quite suddenly unemployed (due to a recession) may not want to answer surveys about being unemployed, and so relative to the amount of people who do bother answering the ILO surveys, more people don't bother. This could be one explanation as to why the claimant count comes out higher than the ILO measure (during times of recession), due to the fact the claimant count is likely to rise faster than the ILO measure. There may be other reasons, but this is the first one that came to mind for me.

    Hope I have been of help
 
 
 
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