Definition and Calculation of Employment-to-Population Ratio
– Employment-to-population ratio measures the proportion of a country’s working-age population that is employed.
– It includes individuals who have stopped looking for work.
– The International Labour Organization defines employment as working at least 1 hour in gainful employment in the most recent week.
– The ratio is calculated and reported periodically by the national agency of statistics.
– Some countries use data on employed individuals registered as taxpayers to calculate an improved performance indicator.
Background and Importance of the Employment-to-Population Ratio
– The employment-to-population ratio gained attention after the recent recession, especially by economists.
– The Great Recession ended in June 2009, but many areas were still economically struggling in 2009 and 2010.
– It is used to evaluate the ability of an economy to create jobs and provides a general evaluation of the labor market stance.
– A high ratio indicates a significant proportion of the working-age population is employed, which can have positive effects on GDP per capita.
Key Definitions Related to Employment Statistics
– Employed persons: Those who do any work as paid employees, own business, work on their own farm, or work 15+ hours as unpaid workers in a family-operated enterprise.
– Unemployed persons: Those who have no employment during the reference week, are available for work, and have made specific efforts to find employment in the past 4-week period.
– Participant rate: Proportion of the population in the labor force.
– Not in the labor force: Individuals in the civilian noninstitutional population who are neither employed nor unemployed.
– Multiple jobholders: Employed persons who have two or more jobs or work as unpaid family workers while holding a wage and salary job.
Use of the Employment-to-Population Ratio
– The ratio is used in conjunction with the unemployment rate to assess the labor market stance.
– A high ratio indicates a larger employed working-age population, which is generally positive for GDP per capita.
– However, the ratio does not provide information on working conditions, hours worked per person, earnings, or the size of the black market.
– Therefore, the analysis of the labor market must consider other statistics as well.
– The measure is obtained by dividing the employed civilian noninstitutionalized population by the total noninstitutionalized population and multiplying by 100.
Employment-to-Population Ratio Worldwide
– A high ratio is generally considered above 70% of the working-age population, while a ratio below 50% is considered low.
– Economies with low ratios are often found in the Middle East and North Africa.
– Employment-to-population ratios tend to be higher for men than for women, but the gap has been narrowing in recent decades.
– The provided statistics show the ratios for various countries, highlighting the differences and trends.
– The ratios can vary significantly between countries and over time. Source: https://en.wikipedia.org/wiki/Employment-to-population_ratio
The Organisation for Economic Co-operation and Development defines the employment rate as the employment-to-population ratio. This is a statistical ratio that measures the proportion of a country's working age population (statistics are often given for ages 15 to 64) that is employed. This includes people that have stopped looking for work. The International Labour Organization states that a person is considered employed if they have worked at least 1 hour in "gainful" employment in the most recent week.
The employment-to-population ratio is usually calculated and reported periodically for the economy by the national agency of statistics.
It is usually calculated by using a survey data collection and the answers of certain people to the questions of the national agency for the economy and statistics of a country.
Some countries also have statistical data about the number of employed people who are registered as taxpayer and have to pay compulsory social insurance payments to the national social insurance system of a country, which could be used to calculate an improved performance indicator of people employed compared to the total labor force.
