9.3.3—Voluntary/involuntary unemployment

Voluntary unemployment refers to choosing not to accept available work at the prevailing terms; involuntary unemployment refers to being willing and able to work but unable to find a job at those terms.

The classification depends on the relevant wage, location, hours, skills and working conditions. A person refusing one unsuitable job is not automatically voluntary unemployed if no reasonable job is available.

A worker who rejects a vacancy far below their reservation wage may be described as voluntary under a simple model; a qualified worker seeking jobs at the prevailing wage but finding none is involuntarily unemployed.

“Voluntary” is not a moral judgement and cannot be inferred from a person’s unemployment alone; state the available alternative and the definition used.