The employment rate is calculated as the ratio of employed persons to the total working age population
The employment rate is the opposite of the unemployment rate and, like the unemployment rate, provides information on the capacity of a country or population to create jobs.
The formula of the employment rate is as follows:
Employment rate = (number of people who are employed / total labor force) x 100
It is important not to confuse the employed population rate with the activity rate, since the latter is calculated from the active population, not the employed population.
The employment rate is used to measure the degree of economic development of the country under analysis.
Related terms