The effect was particularly pronounced for those with vocational or secondary education.Costs of unemployment also vary depending on age. The young and the old are the two largest age groups currently experiencing unemployment. A 2007 study from Jacob and Kleinert found that young people (ages 18 to 24) who have fewer resources and limited work experiences are more likely to be unemployed. Other researchers have found that todays high school seniors place a lower value on work than those in the past, which is likely because they recognize the limited availability of jobs. At the other end of the age spectrum, studies have found that older individuals have more barriers than younger workers to employment, require stronger social networks to acquire work, and are also less likely to move from temporary to permanent positions. Additionally, some older people see age discrimination as the reason for them not getting hired. Social
An economy with high unemployment is not using all of the resources, specifically labour, available to it. Since it is operating below its production possibility frontier, it could have higher output if all of the workforce were usefully employed. However, there is a tradeoff between economic efficiency and unemployment: if all frictionally unemployed accepted the first job that they were offered, they would be likely to be operating at below their skill level, reducing the economys efficiency.During a long period of unemployment, workers can lose their skills, causing a loss of human capital.
Furthermore, pension receivables or claims could depend on the registration at the government employment agency.In many countries like in Germany, the unemployment rate is based on the number of people who are registered as unemployed. Other countries like the United States use a labour force survey to calculate the unemployment rate.The ILO describes four different methods to calculate the unemployment rate:
Labour Force Sample Surveys are the most preferred method of unemployment rate calculation since they give the most comprehensive results and enables calculation of unemployment by different group categories such as race and gender. This method is the most internationally comparable. Official Estimates are determined by a combination of information from one or more of the other three methods. The use of this method has been declining in favor of labour surveys. Social Insurance Statistics, such as unemployment benefits, are computed base on the number of persons insured representing the total labour force and the number of persons who are insured that are collecting benefits. This method has been heavily criticized because if the expiration of benefits before the person finds work. Employment Office Statistics are the least effective since they include only a monthly tally of unemployed persons who enter employment offices. This method also includes those who are not unemployed by the ILO definition.The primary measure of unemployment, U3, allows for comparisons between countries. Unemployment differs from country to country and across different time periods.