| Code | SL.UEM.TOTL.ZS |
| Indicator Name | Unemployment, total (% of total labor force) (modeled ILO estimate) |
| Long definition | Unemployment refers to the share of the labor force that is without work but available for and seeking employment. |
| Source | International Labour Organization. “ILO Modelled Estimates and Projections database (ILOEST)” ILOSTAT. Accessed June 18, 2024. https://ilostat.ilo.org/data/. |
| Topic | Social Protection & Labor: Unemployment |
| Periodicity | Annual |
| Aggregation method | Weighted average |
| Statistical concept and methodology | The standard definition of unemployed persons is those individuals without work, seeking work in a recent past period, and currently available for work, including people who have lost their jobs or voluntarily left work. In addition, persons who did not look for work but have an arrangement for a future job are also counted as unemployed. Still, some unemployment is unavoidable—at any time, some workers are temporarily unemployed between jobs as employers look for the right workers and workers search for better jobs. The labor force or the economically active portion of the population serves as the base for this indicator, not the total population.
The series is part of the "ILO modeled estimates database," including nationally reported observations and imputed data for countries with missing data, primarily to capture regional and global trends with consistent country coverage. Country-reported microdata is based mainly on nationally representative labor force surveys, with other sources (e.g., household surveys and population censuses) considering differences in the data source, the scope of coverage, methodology, and other country-specific factors. Country analysis requires caution where limited nationally reported data are available. A series of models are also applied to impute missing observations and make projections. However, imputed observations are not based on national data, are subject to high uncertainty, and should not be used for country comparisons or rankings. For more information: https://ilostat.ilo.org/resources/concepts-and-definitions/ilo-modelled-estimates/ |
| Development relevance | Paradoxically, low unemployment rates can disguise substantial poverty in a country, while high unemployment rates can occur in countries with a high level of economic development and low rates of poverty. In countries without unemployment or welfare benefits people eke out a living in vulnerable employment. In countries with well-developed safety nets workers can afford to wait for suitable or desirable jobs. But high and sustained unemployment indicates serious inefficiencies in resource allocation.
Youth unemployment is an important policy issue for many economies. Young men and women today face increasing uncertainty in their hopes of undergoing a satisfactory transition in the labour market, and this uncertainty and disillusionment can, in turn, have damaging effects on individuals, communities, economies and society at large. Unemployed or underemployed youth are less able to contribute effectively to national development and have fewer opportunities to exercise their rights as citizens. They have less to spend as consumers, less to invest as savers and often have no "voice" to bring about change in their lives and communities. Widespread youth unemployment and underemployment also prevents companies and countries from innovating and developing competitive advantages based on human capital investment, thus undermining future prospects.
Unemployment is a key measure to monitor whether a country is on track to achieve the Sustainable Development Goal of promoting sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. [SDG Indicator 8.5.2] |
| Limitations and exceptions | The criteria for people considered to be seeking work, and the treatment of people temporarily laid off or seeking work for the first time, vary across countries. In many cases it is especially difficult to measure employment and unemployment in agriculture. The timing of a survey can maximize the effects of seasonal unemployment in agriculture. And informal sector employment is difficult to quantify where informal activities are not tracked.
There may be also persons not currently in the labour market who want to work but do not actively "seek" work because they view job opportunities as limited, or because they have restricted labour mobility, or face discrimination, or structural, social or cultural barriers. The exclusion of people who want to work but are not seeking work (often called the "hidden unemployed" or "discouraged workers") is a criterion that will affect the unemployment count of both women and men.
However, women tend to be excluded from the count for various reasons. Women suffer more from discrimination and from structural, social, and cultural barriers that impede them from seeking work. Also, women are often responsible for the care of children and the elderly and for household affairs. They may not be available for work during the short reference period, as they need to make arrangements before starting work. Further, women are considered to be employed when they are working part-time or in temporary jobs, despite the instability of these jobs or their active search for more secure employment. |
| General comments | National estimates are also available in the WDI database. Caution should be used when comparing ILO estimates with national estimates. |
| Notes from original source | Given the exceptional situation, including the scarcity of relevant data, the ILO modeled estimates and projections from 2020 onwards are subject to substantial uncertainty. |
| License URL | https://datacatalog.worldbank.org/public-licenses#cc-by |
| License Type | CC BY-4.0 |
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