Reply to post: Re: Best solution ...

MPs draft bill to close loopholes used by 'sharing economy' employers

DavCrav Silver badge

Re: Best solution ...

"Unemployment figures are a scam perpetuated by governments of all sides to hide the true figure. The long term sick and disabled are rightly not classed as unemployed, and rightly so, but not counting stay at home parents of school age children is completely wrong."

I love it when people who don't know what they are talking about opine about things. This is why we are in so much trouble as a society: everyone has an opinion, and people think their opinions should be treated seriously.

There are multiple unemployment figures. Depending on what you are looking at, you want to consider different things. Full employment is defined as 'everyone who wants a job at the current wage rate has one'. It's normally modified slightly to include a small amount of unemployment caused by people changing job, and there's also seasonal unemployment to worry about. Full unemployment means no 'structural unemployment', i.e., long-term unemployed.

Casting the net wider, we can include people who do not want a job at the current wage rate, either because they are currently doing other activity that is not counted as economic activity, usually caring for the young or old or disabled, that would cost more than they would receive in payment at the current wage rate, or because they are able to support themselves without working, usually by taking money off their partner or parents. If you offered them a job at £1m/hour they would probably take it, but nobody is likely to do that, so they are not employed right now. They count as 'economically inactive'. This includes, depending on how you feel, the retired, children, the severely disabled, and so on.

The old example of someone marrying their housekeeper shows why what you are talking about is much more subtle than you seem to think: if someone marries their housekeeper, GDP drops, even though the same activity takes place, and in fact the household is richer as a result. The housekeeper becomes 'economically inactive', although they were just as busy as they were before.

Or it's 'a scam perpetuated by governments of all sides to hide the true figure'. You of course know the real truth.

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