Explained By: Kimberlyn Boe/LMEP Grant Fellow
Unemployment is one of the most widely discussed economic indicators in Liberia’s governance. But while many people talk about “joblessness,” only a few understand how unemployment is actually measured.
Explained By: Kimberlyn Boe | LMEP Grant Fellow
In recent weeks, there have been claims that more Liberians, or up to 90% of the population, are unemployed, especially under the Unity Party administration.
We have verified these claims and established that Liberia’s unemployment rate is between 2 – 3% of the population.
However, this figure is often misunderstood. In this explainer, we will break down how unemployment is defined, calculated, interpreted, and why official figures sometimes seem lower than expected.
What is “Unemployment”?
According to the World Bank and the International Labour Organization (ILO), unemployment refers to the share of the labour force that is without work, available for work, and actively seeking employment.
In other words, a person is considered unemployed only if he or she does not have a job, is available to work, and is actively looking for work.
Labor Force
According to the ILO, the labour force is the sum of persons in employment and persons in unemployment. Together, these two groups of the population represent the current supply of labour for the production of goods and services taking place in a country through market transactions in exchange for remuneration.
How Unemployment Is Measured?
The unemployment rate is calculated by expressing the number of unemployed persons as a percentage of the total number of persons in the labour force.
The unemployment rate is calculated using this formula:
Unemployment Rate = (Number of Unemployed People ÷ Total Labor Force) × 100
For example, if 100 people are in the labor force, and 5 of them are actively looking for jobs, then the unemployment rate is 5%.
Most countries measure unemployment through labor force surveys conducted by national statistical agencies, like the Liberia Institute of Statistics and Geo-Information Services (LISGIS). These surveys collect information from households and ask questions such as:
- Did you work during the reference period?
- If not, were you available to work?
- Have you actively looked for a job recently?
Based on the responses, the government classified the survey respondents as employed, unemployed, or outside the labor force.
Who Is Considered Employed?
Under international labor statistics standards, a person can be considered employed even if they work only a limited number of hours during the reference period. The key issue is whether they performed work or had a job, not necessarily how much income they earned.
This is why unemployment rates do not always capture broader economic difficulties, such as:
- Low wages;
- Irregular employment;
- Informal employment; and
Why Does This Matter?
Understanding how unemployment is measured helps citizens evaluate economic claims more accurately.
For example, when someone claims that “90% of people are jobless,” that statement should not automatically be interpreted to mean the unemployment rate is 90%.
Official unemployment statistics are based on internationally recognized definitions and methodologies that focus specifically on people who are actively participating in the labor market.
The bottom line is, Unemployment is a technical statistical measure, not simply a count of everyone who does not have a job. To be classified as unemployed under international standards, a person must be without work, available for work, and actively seeking employment. Understanding these definitions is essential for interpreting labor market data about employment and the economy.
What is “Without Work”?
According to the International Labour Organization (ILO) Labour Force Concepts and Definitions, a person is considered “without work” if they were not engaged in paid employment or self-employment during the reference period.
This includes individuals who have lost their jobs and are currently unemployed, people who have never had a job but are actively looking for one, self-employed persons whose businesses are no longer operating and who have no work to return to, as well as anyone who did not perform even one hour of work for pay or profit during the reference period.
Under the ILO’s international standard, being “without work” is one of the three conditions required to classify a person as unemployed, alongside being available for work and actively seeking employment.
According to the International Labour Organization, a person is considered without work if they:
- Did not work for pay or profit during the reference period.
- Did not have a job from which they were temporarily absent (for example, due to sick leave, vacation, maternity leave, or temporary layoff with an expectation of returning).
What Is “Available for work”?
According to the International Labour Organization (ILO) Resolution concerning statistics of work, employment and labour underutilization, “available for work” means that a person who is without a job is ready and able to start working within a short period if a suitable job becomes available.
This requirement distinguishes people who genuinely intend to join the labour force from those who are unable or unwilling to work because of reasons such as illness, full-time education, family responsibilities, or retirement.
For example, a person who has no job and is actively seeking employment but cannot begin work because they are unavailable for personal reasons would generally not be classified as unemployed under the ILO definition.
The concept helps ensure that unemployment statistics reflect individuals who are both willing and immediately able to participate in the labour market.
This definition is also reflected in the ILOSTAT Labour Force Concepts and Definitions and the Organisation for Economic Co-operation and Development (OECD) Glossary of Statistical Terms – Unemployment, which describe unemployed persons as those who are without work, available to start work, and actively seeking employment.
Actively Seeking Employment
The ILO considers a person to be actively seeking employment when they have made genuine and concrete efforts to obtain work or establish their own business within a recent period.
These efforts may include submitting job applications, contacting potential employers, registering with employment agencies, attending job interviews, responding to vacancy announcements, seeking assistance through personal or professional networks, or taking practical steps to start a business, such as obtaining permits or securing financing.
Merely expressing a desire to work or waiting for an opportunity without undertaking any of these actions does not satisfy the ILO’s criteria for active job search. This requirement is one of the three internationally recognized conditions for classifying a person as unemployed, alongside being without work and available for work.
Conclusion
In Liberia’s case, the World Bank and the International Labor Organization place its current unemployment rate at approximately 2.9%. This low unemployment rate does not mean that nearly everyone in Liberia has a stable job.
It means that many Liberians work in the informal sector, engaging in self-employment, subsistence farming, petty trading, bike riding, or other forms of vulnerable employment, which International Labor Standards count as employment.
This means that 2.9% of Liberia’s labor force consists of people who do not have jobs, but are available to work and are actively seeking employment.
Editor’s Note: This story is produced as part of the Liberia Media Empowerment Project (LMEP) implemented by Internews with funding from the European Union. The funder or partner had no say in the production of this fact-check report
