Q BankQuestion BankDocsDocuments

4.5.1—Unemployment

Syllabus
9708–2026–2027
Objective
4.5.1
Level
AS

Unemployment means people are available for work but cannot find a job

A person is unemployed when they are without a job, available to work and actively seeking work under the definition being used. The unemployed are part of the economically active labour force, unlike people who are not seeking or available for work.

The definition separates unemployment from inactivity. It also differs from underemployment, where someone has work but wants more hours or a better use of their skills.

Someone who has lost a job, can start next week and has applied for vacancies is unemployed. A full-time student who is not seeking work is economically inactive, even though they have no job.

A person doing no paid work is not automatically counted as unemployed; availability and active search matter, and the statistical definition must be stated.

ConceptA-Level CAIE Economics AS