A dynamic factor model for unemployment statistics

A dynamic factor model for the use of big data in the production of official monthly unemployment figures.
Monthly figures on the labour force are based on data collected through the Labour Force Survey. This is a continuously conducted sample survey, which forms the input for a time series model in which reliable monthly figures on the Labour Force are estimated. This paper explores how the accuracy of these estimates can be further improved by using related series from Google trends and the registered number of unemployed.