In this regard, the objectives of this essay are four-fold, to wit: (1) to present a clear definition of unemployment; (2) to state and determine how it is measured; (3) to identify the different types: seasonal, frictional, cyclical, structural, among others; (4) to state and clearly explain the nature of economic, social costs of unemployment and cost to the individual; and (5) to determine the ways to solve unemployment.
(c) "seeking work", i.e. had taken specific steps in a specified reference period to seek paid employment or self-employment. The specific steps may include registration at a public or private employment exchange; application to employers; checking at worksites, farms, factory gates, market or other assembly places; placing or answering newspaper advertisements; seeking assistance of friends or relatives; looking for land, building, machinery or equipment to establish own enterprise; arranging for financial resources; applying for permits and licences, etc.” (ILO, 2009).
As indicated, the basic criteria for being classified as unemployed are: people without work, currently available for work, and seeking work “in the last 4 weeks and are available to start work in the next 2 weeks” or “out of work, have found a job and are waiting to start it in the next 2 weeks” (ONS, 2009, 4).
Unemployment is measured by the ONS through survey, the Labour Force Survey (LFS). According to ONS (2009), their office conducts the LFS every three months using 53,000 households as samples. The survey focuses on questions inquiring about personal circumstances and activities in the labour market. Then, the unemployment rate is computed first on a residence basis by determining “the proportion of economically active who are unemployed” (ILO, 2009, 7).
The frictional unemployment has been defined as “the amount of