Indicator 7. Unemployment rate

Definition according to ILO and OECD: individuals 15-74 without work, actively seeking employment and ready to start work

Definition

Unemployment rate: the number of people unemployed as a percentage of the labour force. The labour force is the total number of people employed plus unemployed.

Key Information

Recommended Use

What is the policy rationale for Indicator 7 and what is it useful for?

The purpose of the policy is to get background information for policy decision-making at VET-system level

Usefulness of Indicator 7

This is a context indicator which

1. Provides information for all indicators;
2. May be used in the planning, implementation, evaluation and review phases of the quality cycle;
3. May be used for budgetary target setting.

Related Indicators

Which other EQAVET indicators may be used to improve understanding or provide additional information?

All ten EQAVET Indicators

Technical and contextual caveats

Which specific issues should be considered in order to avoid misapplication and/or misinterpretation of this indicator?

This indicator requires consideration at a disaggregated level to ensure relevant comparisons.

Additional information

Which other issues may influence the use of this indicator?

Correlation of economic development, productivity and employment growth and, in particular the mutually reinforcing interaction between education and labour market outcomes.

Technical Notes

Components: Which data elements are needed to generate this indicator?

Numerator: Unemployed workers (by age and gender)
Denominator: Total of Labour Force

Note: Labour Force refers to the number of people of working age and below retirement age who are actively participating in the work or are actively seeking employment.
 

Formula: Which mathematical formula may be used for computing the indicator value?

Unemployed workers (by age, gender, disability status) divided by the total Labour Force x 100.

Reported Subgroups: Which subgroups are commonly reported for this indicator?

Consider relevance exclusively to IVET and/or CVET: disadvantaged groups as defined at European and national/regional/local levels, including age, gender, and migrant status.

Data Requirements: What type of data may be useful to gather on this indicator?

Prevalence of vulnerable groups:

• Scope: national level, IVET and CVET, excluding informal but integrating non formal  VET;
• Coverage: disadvantaged groups as defined at European and national level, including gender and age disadvantaged groups.

The following Questions & Answers may be useful in interpreting this indicator and in supporting its implementation.

NOTE: for further information on unemployment rate according to individual criteria in Estonia and Hungary, please click here