Cellphone Data Can Help Track Real-Time Unemployment Levels: Study

Advertisement
By Press Trust of India | Updated: 16 June 2015 18:11 IST
Cellphone data can detect unemployment levels in real-time because people's communications patterns change when they are not working, according to a new study co-authored by MIT researchers.

Using a plant closing in Europe as the basis for their study, the researchers found that in the months following layoffs, the total number of calls made by laid-off individuals dropped by 51 percent compared with working residents, and by 41 percent compared with all phone users.

The number of calls made by a newly unemployed worker to someone in the town where they had worked fell by 5 percentage points, and even the number of individual cellphone towers needed to transmit the calls of unemployed workers dropped by around 20 percent.

"Individuals who we believe to have been laid off display fewer phone calls incoming, contact fewer people each month, and the people they are contacting are different," said Jameson Toole, a PhD candidate in Massachusetts Institute of Technology's Engineering Systems Division.

Advertisement

"People's social behaviour diminishes, and that might be one of the ways layoffs have these negative consequences. It hurts the networks that might help people find the next job," said Toole, a co-author of the study.

Advertisement

The paper, published in the Journal of the Royal Society Interface, builds a model of cellphone usage that lets the researchers correlate cellphone usage patterns with aggregate changes in employment.

The researchers believe the phone data closely aligns with standard unemployment measures, and may allow analysts to make unemployment projections two to eight weeks faster than those made using traditional methods.

Advertisement

"Using mobile phone data to project economic change would allow almost real-time tracking of the economy, and at very fine spatial granularities both of which are impossible given current methods of collecting economic statistics," said David Lazer, a professor at Northeastern University and a co-author of the paper.

The study's starting point was an automotive plant in Europe that closed in 2006, leaving about 1,100 workers unemployed in a town of roughly 15,000 people.

Advertisement

Having the information about the layoffs allowed the researchers to build an algorithm that, by analysing phone-use patterns, assigns a probability that someone has become unemployed.

The researchers then extended that usage model to see how well it corresponded with larger-scale unemployment, using eight quarters of unemployment data in 52 provinces of a European country.

The researchers emphasise that they are not proposing the new method as a replacement for time-tested ways of measuring unemployment. Instead, they see it as an additional tool for analysts.

"These methods should not be viewed as substitutes for current methods of collecting data about the economy as much as very powerful complements," Lazer said.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Mobiles, Smartphones, Telecom
Advertisement

Related Stories

Popular Mobile Brands
  1. Bridgerton Season 4 Premieres in Two Parts on Netflix: See Details
  2. Scientists Track Glowing Green Comet 3I/ATLAS as It Nears Earth
  3. Sister Midnight Streaming Online: Everything You Need to Know
  1. Early Earth’s Deep Mantle May Have Held More Water Than Previously Believed, Study Finds
  2. Nandamuri Balakrishna's Akhanda 2 Arrives on OTT in 2026: When, Where to Watch the Film Online?
  3. Single Papa Now Streaming on OTT: All the Details About Kunal Khemu’s New Comedy Drama Series
  4. Scientists Study Ancient Interstellar Comet 3I/ATLAS, Seeking Clues to Early Star System Formation
  5. Bridgerton Season 4 to Release in Two Parts on OTT: When and Where to Watch It Online?
  6. Spider-Like Scar on Jupiter’s Moon Europa Could Indicate Subsurface Salty Water
  7. Wake Up Dead Man: A Knives Out Mystery Now Streaming on Netflix: Everything You Need to Know
  8. Secret Rain Pattern May Have Driven Long Spells of Dry and Wetter Periods Across Horn of Africa: Study
  9. Sister Midnight Out on OTT: Know Where to Watch This Radhika Apte-Starrer Online
  10. JWST Detects Thick Atmosphere on Ultra-Hot Rocky Exoplanet TOI-561 b
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.