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Tweet Print Andrea BRANDOLINI Bank of Italy Eliana VIVIANO Bank of Italy Elevator pitch Measuring employment and unemployment is essential for economic policy. Internationally agreed measures (e.g. headcount employment and unemployment rates based on standard definitions) enhance comparability across time and space, but changes in real labor markets and policy agendas challenge these traditional conventions. Boundaries between different labor market states are blurred, complicating identification. Individual experiences in each state may vary considerably, highlighting the importance of how each employed or unemployed person is weighted in statistical indices. Key findings Pros The definitions of employment and unemployment are simple and enhance comparability across time and space. The unemployment rate is a very useful tool for macro analysis. Experience-weighted measures can account for variation in work characteristics (e.g. working time) and job search behavior (e.g. duration of unemployment) across countries and years. Alternative indices broaden information for policy making and may account for diverse value judgments. Cons Boundaries between labor market states are blurred. The definition of employment ignores differences in work arrangements (e.g. part-time, discontinuous working time) that influence total work potential and well-being. The definition of unemployment overlooks differences in search intensity and unemployment duration, despite their relevance for welfare losses and probability of finding a job. Alternative indices require the development of appropriate statistical sources and their underlying methodology can be difficult for the general public to understand. Author's main message As life-long, permanent, full-time work is increasingly replaced by multiple job spells, often intertwined with periods of non-employment and engagement in non-market activities, it is worth revisiting the notions of employment and unemployment and broadening the set of labor force statistics. Headcount indices could be usefully supplemented by experience-weighted indices that account for people's experience in labor market states (e.g. work intensity for the employed and search intensity or unemployment duration for the unemployed). This task likely implies collecting new statistical data, but would improve policy design and understanding of the labor market. Download full article (PDF) This article first appeared on IZA World of Labor in August 2018. Reproduced with permission Tweet November 30, 2018 Print Article(s) by this author Measuring employment and unemploymentShould statistical criteria for measuring employment and unemployment be re-examined? November 30, 2018［From IZA］ Articles Column Special Series Newspapers & Magazines Fellows' Works VoxEU Column From IZA Perspectives from Around the World Other Contents RIETI Report Policy Update Keizai Sangyo Journal Communications Newsletter RSS Feed Facebook X YouTube Research Areas Research Programs (FY2024-2028) Research Programs (FY2020-2023) Research Programs (FY2016-2019) Research Programs (FY2011-2015) Policy Research Domains (FY2006-2010) Projects Survey Fellows Research/Policy Papers Discussion Papers (English) Discussion Papers (Japanese) Policy Discussion Papers (English) Policy Discussion Papers (Japanese) Technical Papers (English) Technical Papers (Japanese) Non Technical Summaries List of Articles in Journals Research Digest Discussion Papers Search Publications RIETI Books (English) RIETI Books (Japanese) History of Japan's Trade and Industry Policy Authors' Words Other Publications (English) Other Publications (Japanese) Events Symposiums Workshops BBL Seminars Archived Seminar Series Data JIP Database R-JIP Database CIP Database Industry-Specific Nominal and Real Effective Exchange Rates AMU and AMU Deviation Indicators JSTAR RIETI-TID RIETI FDI Database ICPA Project Links Articles Column Special Series Newspapers & Magazines Fellows' Works VoxEU Column From IZA Perspectives from Around the World Other Contents RIETI Report Policy Update Keizai Sangyo Journal (METI Journal) About RIETI Privacy Policy Site Policy Site Map Help Contact METI Web Site Research Institute of Economy, Trade and Industry, IAA (JCN 6010005005426)JCN: Japan Corporate Number Opinions expressed or implied on this website are solely those of the author, and do not necessarily represent the views of the Research Institute of Economy, Trade and Industry (RIETI).Titles, numbers, specific names, etc. on this website are as of the date of publication. 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