The employment rate, also known as the employment rate, is a ratio used to calculate the percentage of people who are working with respect to the total population that is of working age -or active population-, considering that the employed population is one who, having more than 16 years, is working for their own account or for others.
The employment rate is used to measure the level of economic development and employment in a population.
How to calculate the occupancy rate
To calculate the employment rate of a population, a series of data on the population and its level of employment must be known.
In the first place, it is necessary to know the number of people who are of working age or PET for its initials, which are those who are between 16 and 65 years old, so to know this data the employed population must be added , idle and stop.
Second, it is necessary to know the number of people who are working at the time of calculation, as well as employed workers or self-employed or self-employed.
Knowing the value of these two data, the rate or percentage of the employed population can now be calculated by applying the following mathematical formula:
Employed population rate = (Number of employed / Population of working age) x 100
Example of calculating the occupancy rate
To have a clearer definition of the employment rate or occupation percentage, we are going to see a practical example of how it is calculated:
- Active population: 10.000.000
- Total unemployed population: 2.000.000
- Inactive population: 7.000.000
First, we calculate the total number of people who are of working age:
PET = Active population + unemployed population + inactive population
PET = 10.000.000 + 2.000.000 + 7.000.000 = 19.000.000
Second, we proceed to calculate the employed population rate or occupation percentage:
Employed population = (10.000.000 / 19.000.000) x 100 = 52,6%
This means that 100 out of every 52,6 people are employed or have a job.