Who are the unemployed? Evidence from the United Kingdom

- This paper develops an evidence-based measure of unemployment using the UK data.
- Groups are identified on the basis of the reason for their labour market state.
- Hazard rates into employment are used to characterise the behaviour of groups.
- Three inactive groups are identified as behaviourally similar to the unemployed.
- The alternative measure derived appears to be stable across time and countries.

Using the UK Labour Force Survey 2005-2012, we analyse heterogeneity among non-employment subgroups in future employment hazards. Based on the results, we propose alternative measures of unemployment that include out-of-the-labour-force subgroups with similar or higher hazards to the officially unemployed.