How is unemployment defined?

Unemployment is defined as individuals who are able and willing to work but cannot find suitable employment. This definition captures the essence of unemployment: it includes those who are looking for jobs, demonstrating both the desire and capacity to work, yet are faced with barriers in securing employment. This perspective is essential when discussing economic policies, labor market dynamics, and the overall health of an economy.

The criterion here emphasizes not only the willingness but also the ability to work, as individuals who are seeking work actively are the focus of employment statistics. In contrast, those not actively seeking jobs or who have exited the labor force, such as retirees, do not fit within this definition of unemployment. It's critical to distinguish between those who want to work and those who may be in a different status entirely, such as part-time workers, who do not meet the criteria of being unemployed simply because they are engaged in some form of work, even if not full-time. This distinction is vital for understanding labor market conditions and formulating relevant policies aimed at reducing unemployment.