Tom Whipple
Win VIP tickets
Unemployment, one would reasonably assume, is the state of not being employed. Following this logic, by adding together all the employed people and unemployed people of working age in Britain you would expect to get all the people of working age in Britain. According to official statistics, the employment rate is 74.2 per cent. But the unemployment rate is just 6 per cent – 1,864,000 people.
That leaves one person in five unaccounted for: neither employed, nor unemployed. It gets more confusing.
According to another set of official statistics, the unemployment rate is just above one million. Grouping people (who are messy) into categories (which are distinct) has always been the statistician’s downfall. Is an ex-Lehman’s banker, currently drinking last year’s bonus in a Goan beach bar, unemployed? What about an ex-miner, who would like to do light work but lives in an industrial area and claims incapacity benefits?
There are 1,071,900 people currently claiming jobseeker’s allowance. Everyone agrees that they are unemployed. But most statisticians also agree that there are plenty of unemployed people who are not on the dole. If your partner works, if you have savings above a certain level, or if you are outside a set age range, then you may not qualify for jobseeker’s allowance. And some people just decide, for whatever reason, not to claim.
The best estimate of unemployment is calculated by the Office for National Statistics. It uses a definition set by a United Nations agency, the International Labour Organisation. This rate counts people who want to work, are available to work, and are actively seeking employment – based on survey data. This brings the rate for August to October – the earliest period for which data is available – to 6 per cent, the highest since 1999.
What, though, of the missing one in five? For the same period, there were 7.9 million people over 16 and below retirement age who were classed as “economically inactive”; 2 million of those were students; 2.3 million said they were looking after a family or home; and another 2 million were long-term sick. None of them is counted as unemployed, whatever definition is used.
But, when questioned, 2.1 million of them said they would like a job. If they were included, the unemployment rate would rise to just under 4 million.

Sam Coates's blog about Westminster, politics and spin
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£23,093 - £56,211
The Office for National Statistics
Newport, South Wales
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
Based on the figures you quote that comes to 7.500.000 people not working for whatever reason. I think it is all one big spin. Sack Brown and co as soon as you possibly can.
Tony, Leigh-on-Sea, Essex
"And some people just decide, for whatever reason, not to claim." If only there were more people with enough dignity to seek to look after themselves rather exploit the generosity of others.
andrew, london,
We've known this for a long time and it just shows how badly Brown & Co have served this country. The majority are not scroungers and are having to live on their savings like me and we are suffering even more thanks to the reduction in interest rates.
Roger Slade, winchester,
I congratulate you on this piece. Unemployment figures have been manipulated by our governments for years. Brown and Blair before him have been economical with the truth regarding the economy, Iraq etc. Sadly I don't trust politicians, broadcasters, train operators et al.
amy mansell, Seaford, UK
How many of the 4 million are benefits scroungers?
ben foster, wokingham,