Why are employment statistics in developing countries unreliable?

  • 0 votes

For some reason my teacher didn't explain this nor were we provided with notes on Unemployment statistics. (AS Economics)

Posted Thu 11th October, 2012 @ 07:24 by Alex

1 Answer

  • 0 votes

There are a few reasons for this. One reason is because developing countries lack the level of technology that developed countries such as the UK enjoy. This would mean that there is more assymetric information in developing countries. This also means that it would be harder to accurately forecast employment numbers. This is because the UK has measures such as the claimant count etc.. while developing countries don't have these measures in place.

Another reason links to the assymetric information bit I was talking about. Assymetric information is basically when one group has more information available than others. In this case the group would be the government of developing countries. It is in their favour sometimes to skew their own data to make them look more competitive/less competitive.  For instance, a country may want itself to look weaker than it already is so it can receive more in aid.

Hope this helped

(I do a2 economics) 

Answered Mon 31st December, 2012 @ 22:04 by .