What characterizes an "unemployed" person according to economic criteria?

An "unemployed" person is characterized specifically by their status relative to the labor market, particularly in how actively they are seeking work. To be classified as unemployed in economic terms, an individual must not have worked in the previous week and must have made genuine efforts to find work in the recent past, typically over the last four weeks. This definition emphasizes both the lack of current employment and the engagement in job-seeking activities, distinguishing unemployed individuals from those who may be out of work but not actively looking for a job.

The emphasis on the four-week job search period is crucial, as it indicates a proactive approach to finding employment. This captures those who are in transition between jobs or are facing temporary setbacks but still have intentions to secure a job.

Recognizing this definition helps to understand broader labor market dynamics, such as the unemployment rate, which includes only those who meet these criteria for unemployment. Other scenarios might describe individuals who are not classified as unemployed; for instance, a person working part-time or just entering the job market may not fit the criteria needed to be considered unemployed according to the standard economic definition.