Nowadays estimating unemployment rates by small areas is a key issue in many European Statistical Offices. The success of this aim is strongly based on the quality and quantity of available auxiliary information, heavily related to the number of unemployed. However, the available auxiliary information can vary along countries and regions. This means that different estimators and sometimes different methodology may be used. Traditionally, the sampling design includes rotational panels as a way to stabilize the estimates, but unfortunately this information is not usually embedded in the estimation process. When the auxiliary information is limited, its use is especially important not only for estimating the level of the unemployment series but also to stabilize the estimates.
In this work we present the estimation process used by the Basque Country statistical office and how it can be improved including the information of the rotational panels.
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