What is unemployment?

Unemployment is the condition of being without paid work while actively seeking and available to take a job, and it is the headline measure used by the Office for National Statistics to describe weakness in the labour market.

In the United Kingdom, the official unemployment rate is calculated from the Labour Force Survey, which follows the internationally agreed definition set by the International Labour Organization. A person is counted as unemployed if they are aged 16 or over, are without a job, have actively sought work in the previous four weeks, and are available to start work within the next two weeks. The unemployment rate expresses the number of unemployed people as a percentage of the economically active population (that is, those in work plus those unemployed). People who are not seeking work (students, those caring for family, those who have retired early, those too ill to work) are counted as "economically inactive" rather than unemployed.

Unemployment figures are published monthly by the Office for National Statistics. In recent decades, the UK unemployment rate has typically ranged between roughly 3.5 and 8 per cent, rising sharply in recessions and falling in periods of growth. The measure is closely watched as an indicator of economic health and is used by the Bank of England's Monetary Policy Committee when setting interest rates.

For individuals, being unemployed has both financial and social consequences. The main government support for people who are unemployed is Universal Credit, administered by the Department for Work and Pensions, which replaced Jobseeker's Allowance and five other benefits for most new claimants. Contribution-based "new-style" Jobseeker's Allowance is still available for those who have paid enough recent National Insurance contributions and runs alongside Universal Credit. Both require the claimant to sign a Claimant Commitment, setting out what they will do to find work, and to meet with a work coach at Jobcentre Plus.

Alongside benefits, Jobcentre Plus offers a range of support services: job search help, training referrals, CV and interview coaching, and sector-based work academies. The Restart Scheme, the Youth Offer, and the Work and Health Programme are examples of targeted interventions for particular groups.

Unemployment varies by age, region, and qualification. Young people aged 16 to 24 typically face higher unemployment rates than the population as a whole, and parts of the north of England, Wales, and Northern Ireland have historically had higher rates than the south-east. Long-term unemployment, meaning a spell of twelve months or more, is associated with significantly worse health, housing, and mental health outcomes.