UNEMPLOYMENT

WHAT IS UNEMPLOYMENT?

Unemployment occurs when a person who is actively searc

hing for employment is unable to find work.

Unemployment is often used as a measure of the health o

f the economy.
THE 4 TYPES OF UNEMPLOYM
ENT

1. Frictional unemployment.
Frictionally unemployed people are in between jobs or are stude
nts who just completed school and are looking for a job. This f
orm of unemployment is usually short-lived in nature.

2. Structural unemployment.
The structurally unemployed are people who are laid off and loo
king for work because technology advances or other structural ch
anges in production (for example, companies moving abroad) took
away their jobs. The horse-and-buggy drivers of the early 1900s
lost their jobs after the automobile became popular and afforda
ble.
3. Cyclical unemployment

Cyclically unemployed people are laid off due to a decl

ine in the demand for their product; they are also look
ing for a job. During recessions, the demand for cars a
nd houses and other durable products decreases. Workers
in these industries lose their jobs until demand increa
ses again. This form of unemployment is usually tempora
ry in nature.
4. Seasonal unemployment

Seasonally unemployed people are out of work and lookin

g for a job during the off-season. Examples include ice
cream vendors during the winter, schoolteachers during
the summer (they are considered unemployed only if they
are looking for a job during this time), and ski-lift o
perators during the summer.
HOW TO CALCULATE UNEMPLO
YMENT RATE?

Calculating the Federal Unemployment Rate

1. Find the number of unemployed people. "Unemployed" p

eople are defined by the federal government as people w
ho are able to work and who have actively looked for wo
rk in the last four weeks.
2. Find the number of employed people. The employed pop
ulation of a nation is accounted for by people who have
full-time jobs. They are also considered to be employed
if they are self-employed, if they work part-time, or i
f they work for a family business for more than 15 hour
s a week, even if the work is unpaid.
 

3. Remove people who are not considered to be i

n the labor force. People who are not part of t
he labor force are people who are not actively
looking for work or people who are otherwise oc
cupied, whether they are students, homemakers,
or disabled.

Unemployment Rate X 100

ASEAN MEMBERS UNEMPLOYME
NT RATE
Thailand Unemployment Rate 2001-2018
The unemployment rate in Thailand stood at 1.1 percent in April of 2
018, the same as in the corresponding month of the preceding year. T
he number of unemployed dropped by 10,400 from the prior year to 404
,500 people, while the number of employed increased by 190,400 to 37
,282,300 people. In March 2018, the jobless rate was 1.2 percent. Un
employment Rate in Thailand averaged 1.44 percent from 2001 until 20
18, reaching an all time high of 5.73 percent in January of 2001 and
a record low of 0.39 percent in November of 2012.
Vietnam Unemployment Rate 1998-2018
Unemployment Rate in Vietnam decreased to 2.01 percent in the fourt
h quarter of 2017 from 2.02 percent in the third quarter of 2017. Un
employment Rate in Vietnam averaged 2.28 percent from 1998 until 201
7, reaching an all time high of 4.50 percent in the fourth quarter o
f 1998 and a record low of 1.63 percent in the second quarter of 201
4.
Indonesia Unemployment Rate 1982-2018 | Data | Chart | Calendar
Unemployment Rate in Indonesia decreased to 5.13 percent in the first q
uarter of 2018 from 5.50 percent in the third quarter of 2017. Unemploy
ment Rate in Indonesia averaged 6.07 percent from 1982 until 2018, reac
hing an all time high of 11.24 percent in the third quarter of 2005 and
a record low of 2 percent in the fourth quarter of 1983.
Singapore Unemployment Rate 1986-2018 | Data | Chart | Calendar
Singapore’s seasonally adjusted unemployment rate inched down to 2 per
cent in the March quarter of 2018 from 2.1 percent in the previous quar
ter and in line with the preliminary estimate. It is the lowest jobless
rate since the first quarter 2016, as layoff declined the most in five
years while jobs openings outnumbered job seekers for the first time in
two years. Unemployment Rate in Singapore averaged 2.44 percent from 19
86 until 2018, reaching an all time high of 6 percent in the first quar
ter of 1986 and a record low of 1.40 percent in the second quarter of 1
990.
Malaysia Unemployment Rate 1998-2018 | Data | Chart |
Calendar | Forecast
The unemployment rate in Malaysia inched down to 3.3 pe
rcent in April of 2018 from 3.4 percent in the same mon
th of the previous year. The number of unemployed dropp
ed by 0.4 percent from a year earlier to 510 thousand,
while employment went up by 2.6 percent to 14.8 million
and the labor force rose 2.5 percent to 15.31 million.
On a seasonally adjusted basis, the jobless rate also s
tood at 3.3 percent, the same as in the prior month. Un
employment Rate in Malaysia averaged 3.29 percent from
1998 until 2018, reaching an all time high of 4.50 perc
ent in March of 1999 and a record low of 2.70 percent i
n August of 2012.
Myanmar Unemployment Rate 1994-2018 | Data | Chart | C
alendar | Forecast
Unemployment Rate in Myanmar increased to 4.10 percent
in 2014 from 4.02 percent in 2013. Unemployment Rate in
Myanmar averaged 4.04 percent from 1994 until 2014, rea
ching an all time high of 4.15 percent in 1995 and a re
Cambodia Unemployment Rate 1994-2018 | Data | Chart | Calendar |
Forecast
Unemployment Rate in Cambodia increased to 0.30 percent in 2017 f
rom 0.20 percent in 2016. Unemployment Rate in Cambodia averaged
0.99 percent from 1994 until 2017, reaching an all time high of 2
.50 percent in 2000 and a record low of 0.10 percent in 2014.
Laos Unemployment Rate 1991-2018 | Data | Chart | Calendar | For
ecast
Unemployment Rate in Laos remained unchanged at 0.70 percent in 2
017 from 0.70 percent in 2016. Unemployment Rate in Laos averaged
1.50 percent from 1991 until 2017, reaching an all time high of 2
.60 percent in 1992 and a record low of 0.60 percent in 2015.
Brunei Unemployment Rate 1995-2018 | Data | Chart | Calendar | F
orecast
Unemployment Rate in Brunei increased to 2 percent in 2016 from 1
.86 percent in 2015. Unemployment Rate in Brunei averaged 3.45 pe
rcent from 1995 until 2016, reaching an all time high of 7.20 per
cent in 2001 and a record low of 1.66 percent in 2014.
PHILIPPINES UNEMPLOYMENT RATE
1994-2018

The unemployment rate in the Philippines dropped to 5.5 pe

rcent in the June quarter of 2018 from 5.7 percent a year
ago. The number of unemployed persons went down by 83 thou
sand to 2.36 million while the number of employed increase
d by 625 thousand to 40.9 million. Meanwhile, the labor fo
rce participation rate declined to 60.9 percent from 61.4
percent.
Among employed persons, workers in the services sector mad
e up 56.4 percent of the total, followed by those in the a
griculture sector (23.9 percent) and industry (19.7 percen
t). Unemployment Rate in Philippines averaged 8.44 percent
from 1994 until 2018, reaching an all time high of 13.90 p
ercent in the first quarter of 2000 and a record low of 4.
70 percent in the fourth quarter of 2016.
The causes of unemployment in high-income countries of the world c
an be categorized in two ways: either cyclical unemployment caused
by the economy being in a recession, or the natural rate of unempl
oyment caused by factors in labor markets, such as government regu
lations regarding hiring and starting businesses.

Unemployment from a Recession

For unemployment caused by a recession, the Keynesian economic mo
del points out that both monetary and fiscal policy tools are ava
ilable. The monetary policy prescription for dealing with recessi
on is straightforward: run an expansionary monetary policy to inc
rease the quantity of money and loans, drive down interest rates,
and increase aggregate demand. In a recession, there is usually r
elatively little danger of inflation taking off, and so even a ce
ntral bank, with fighting inflation as its top priority, can usua
lly justify some reduction in interest rates.
THE NATURAL RATE OF UNEM
PLOYMENT

Unemployment rates in the nations of Europe have typica

lly been higher than in the United States. In 2006, bef
ore the start of the Great Recession, the U.S. unemploy
ment rate was 4.6%, compared with 9% in France, 10.4% i
n Germany, and 7.1% in Sweden. The pattern of generally
higher unemployment rates in Europe, which dates back t
o the 1970s, is typically attributed to the fact that E
uropean economies have a higher natural rate of unemplo
yment because they have a greater number of rules and r
estrictions that discourage firms from hiring and unemp
loyed workers from taking jobs.
UNDEVELOPED LABOR MARKET
S

Low-income and middle-income countries face employment i

ssues that go beyond unemployment as it is understood in
the high-income economies. A substantial number of worke
rs in these economies provide many of their own needs by
farming, fishing, or hunting. They barter and trade with
others and may take a succession of short-term or one-da
y jobs, sometimes being paid with food or shelter, somet
imes with money. They are not “unemployed” in the sens
e that the term is used in the United States and Europe,
but neither are they employed in a regular wage-paying j
ob.