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Yes, 失业 (shīyè) is used in formal contexts. It is a noun that means "unemployment" or "being out of work". It is often used in official documents, such as government reports, to refer to the number of people who are unemployed. It is also used in news reports and other media to discuss the current state of the job market.
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待业 is "be unemployed" as in being the state of waiting for a job. For instance, a graduate from university can be unemployed directly after graduation.
失业 is to lose one's job. To lose one's job, you first have to have a job to begin with. So in the example of that university graduate, we cannot use 失业, since the graduate has never had a job before.
Hope this explanation helps!
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