Employment Rate Definition

A rate is a coefficient that expresses the relationship between two magnitudes. employment , on the other hand, is a paid occupation, profession or trade.

The employment rate is known as the ratio between the employed population and the economically active population (which is able to be part of the labor market).The most common, however, is the unemployment rate (the number of unemployed over the economically active population).

The employment rate, in other words, allows to indicate what percentage of workers are actually employed .For example: if the employment rate of a country is 84%, it means that 84 every 100 economically active people are employed.The remaining 16 people, on the other hand, are unemployed or unemployed; The country's unemployment rate, therefore, is 16%.

In this regard, several issues must be made clear.The first of these is that the employed population comes to refer to the entire active population., 16 years and older, who has a job either on behalf of someone else or their own and who has received a fee for it.In this sense, those people who get a salary working in the company of a company are also included in this typology family with whom you also live together.

The second question that is also worth making clear is that the active population is made up of all those people from a specific country who have a job or are currently looking for it.In this way, we could determine that under the umbrella of that denomination is, therefore, two clearly defined groups: the employees and the unemployed.

It is interesting to be clear that when determining the percentage and exact figures of the active population of a nation, it is necessary to resort to the entities that specifically take care of it.This would be the case, for example, in Spain.National Statistics Institute (INE) whose mission is to calculate various values ​​such as the activity or employment rate based on criteria such as the autonomous communities, sex, age...

Currently, due to the economic crisis that is ravaging the world, it must be recognized that employment rates in many countries have registered historical milestones, which makes the seriousness of the situation clear.

These statistics are never accurate.A subject may be part of the economically active population and not have a job because he is not looking for it or is not interested in working.This individual will be considered as unemployed even though, perhaps, there is an offer enough work to be part of the market .

The employment rate can also be linked to the notion of full employment , an economic concept that assumes that all people in productive working age who wish to work are employed The demand for work, therefore, is equal to the supply, which is reflected in an employment rate of 100% and an unemployment rate of 0.