The paper compares the ILO guidelines, international common practices
and the PCBS methodology for deriving the standard and relaxed
unemployment rates and concludes that the PCBS methodology is not in
line with international common practices and does not reflect the
Palestinian search patterns. As the result, it potentially understates the
standard and relaxed unemployment rates. The paper also reviews and
analyzes a new nationwide survey aimed at understanding the relationship
between those out of the labor force and the labor market. The results
show frequent interaction between a significant portion of those out of the
labor force and the labor market, as well as their ability, willingness and
readiness to work. Lastly, the paper suggests a preliminary framework for
categorizing those out of the labor force that allows for in-depth analysis
of supplementary indicators of labor underutilization