The U.S. Department of Labor Statistic utilizes six measurements while computing the unemployment rate. The measures extend from U1 – U6 and were accounted from 1950 through 2010. They figure distinctive parts of unemployment. The measures are:
U1: The level of labor force unemployment for 15 weeks or more.
U2: The level of the labor force who lost jobs or completed temporary work.
U3: The official unemployment rate that happens when individuals are without jobs and they have effectively searched for work within the past four weeks.
U4: The people described in U3 in addition to “disheartened laborers,” the individuals who have quit searching for work since flow financial conditions influence them to imagine that no work is accessible to them.
U5: The people described in U4 in addition to other “marginally attached workers,” “loosely attached workers,” or the individuals who “might want” and can work, yet have not searched for work as of late.
U6: The people described in U5 in addition to low maintenance laborers who need to work all day, however can’t because of monetary reasons, principally underemployment.
Following are the different types of Unemployment:
1. Natural Unemployment: Natural unemployment, or the natural rate of unemployment, is the base or minimum unemployment rate coming about because of genuine, or voluntary, economic powers. Natural unemployment is the level of unemployment constantly present in an economy as enterprises grow contract, as mechanical advances happen, as new generations enter the labor force and as workers voluntarily search for better options.
The unemployment rate measures the rate of employable individuals for a country’s workforce who are beyond 16 years old and who have either lost their jobs or have unsuccessfully looked for employment in the most recent month are still currently looking for work.