Unemployment concepts
There are three different unemployment concepts – net unemployment, gross unemployment and LFS unemployment.
Statistics Denmark regularly publishes two sets of unemployment statistics, which use different unemployment concepts and consequently result in different unemployment figures. The register-based unemployment statistics, which assess net unemployment and gross unemployment, and the interview-based Labour Force Survey (LFS), which assesses LFS unemployment.
Net unemployment covers recipients of unemployment benefits, cash benefits and student grants who are job-ready and not in job activation. The numbers are converted into ‘full-time equivalent (FTE) unemployed persons’.
In addition to net unemployment, gross unemployment also covers recipients of unemployment benefits, cash benefits and student grants who are job-ready and in job activation, including persons employed with wage subsidies, also converted into ‘FTE unemployed persons’.
LFS unemployment covers persons who indicate in the Labour Force Survey that they were not in employment during the week that the survey took place, and that they actively sought employment in the four weeks up to the week in which the survey took place, and that they were able to start a job within two weeks.
When to use which unemployment concept
In Denmark, gross unemployment is the most common unemployment concept used in the debate. Gross unemployment (and net unemployment, which is a subset hereof) gives monthly details on unemployment, e.g. at municipal level, broken down by age groups or by unemployment insurance funds. Moreover, gross unemployment is ideal for highlighting the extent of part-time unemployment and for linking with other register variables such as education and country of origin. LFS unemployment is mainly used in international comparisons of unemployment rates and trends in different countries. Furthermore, the LFS can show the extent of unemployed persons who are not entitled to unemployment benefits or cash benefits, or be used to assess the number of persons who want to find a job.
Overview of unemployment concepts
| LFS unemployment | Net unemployment | Gross unemployment | |
| Based on | QUESTIONNAIRE (figures from the Labour Force Survey) |
REGISTERS (data from STAR - the Danish Agency for Labour Market Recruitment) |
REGISTERS (data from STAR - the Danish Agency for Labour Market Recruitment) |
| Is | sample-based questionnaire survey with 72,000 interviews each year |
register-based complete census | register-based complete census |
| Published | quarterly | monthly | monthly |
| Unemployed persons | Complies with the international ILO definition: - are completely jobless and - are available to take up employment and - have carried out activities to seek employment |
are registered as unemployed recipients of unemployment benefits or job-ready recipients of cash benefits, excl. those in activation | are registered as unemployed recipients of unemployment benefits, incl. those in activation |
| What is counted |
number of PERSONS | persons converted to FTE PERSONS | persons converted to FTE PERSONS |
| Time series in Statbank Denmark |
From 1990 | From 1979 | From 2007 |
| Strengths | - useful in international comparisons - shows also unemployed persons who are not entitled to unemployment benefits or cash benefits - shows persons who want to get a job - shows youth unemployment (15-24-year-old persons) - allows for supplementary questions |
- a monthly flash unemployment indicator - a long time series from 1979 - shows small groups of persons - shows available hours - shows breakdown by unemployment benefit funds - linkage with other register variables |
- a monthly flash unemployment indicator - shows small groups of persons - shows available hoursr - shows breakdown by unemployment benefit funds - linkage with other register variables |
| Weaknesses | - statistical uncertainty - high uncertainty for small groups |
complies only partly with the ILO definition, as it only covers persons who are entitled to unemployment benefits or cash benefits | complies only partly with the ILO definition, as it only covers persons who are entitled to unemployment benefits or cash benefits |