Investopedia

Continue to Site »

Employment-To-Population Ratio

Filed Under » ,
Dictionary Says

Definition of 'Employment-To-Population Ratio'

A macroeconomic statistic that takes the ratio of the total working age of the labor force currently employed to the total working age population of a region, municipality or country. It is calculated by:

Employment-To-Population Ratio


The working force and population only include individuals within the working age.
Investopedia Says

Investopedia explains 'Employment-To-Population Ratio'

Some restrictions in the calculation could come from not including black market labor, workers under or over the working age limits, and hours worked. The employment ratio is also subject to some manipulation by reporting agencies as well, and may be skewed in order to give the perception that an economy, based on this metric, is performing better then it really is.

For example, the numerator does not account for individuals who are currently enrolled in an educational institution and not working. These students are unemployed by choice but it still results in a lower calculation.

Articles Of Interest

  1.

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.

  2. Using Historical Volatility To Gauge Future Risk

    Use these calculations to uncover the risk involved in your investments.

  3. The Importance Of Inflation And GDP

    Learn the underlying theories behind these concepts and what they can mean for your portfolio.

  4. What You Need To Know About The Employment Report

    This widely watched indicator of economic well-being also directly influences the market.

  5. 5 ETFs Flaws You Shouldn't Overlook

    Despite their popularity, exchange traded funds have some drawbacks that investors should know about.

  6. Using The Price-To-Book Ratio To Evaluate Companies

    The P/B ratio can be an easy way to determine a company's value, but it isn't magic!

  7. Liquidity Vs. Solvency

    Learn about the differences between these two words and how each one is used in the stock market.

  8. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.

  9. The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.

  10. R-Squared

    Learn more about this statistical measurement used to represent movement between a security and its benchmark.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center