Employment-To-Population Ratio

AAA

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 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.

RELATED TERMS
  1. Private Sector

    The part of the economy that is not state controlled, and is ...
  2. Mature Economy

    A mature economy is the situation where the country's population ...
  3. Economics

    A social science that studies how individuals, governments, firms ...
  4. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  5. Natural Unemployment

    The lowest rate of unemployment that an economy can sustain over ...
  6. Participation Rate

    A measure of the active portion of an economy's labor force. ...
Related Articles
  1. Markets

    Using Historical Volatility To Gauge Future Risk

    Use these calculations to uncover the risk involved in your investments.
  2. thinkstock|istock
    Economics

    What You Need To Know About The Employment Report

    This widely watched indicator of economic well-being directly influences the market.
  3. Options & Futures

    Explaining The World Through Macroeconomic Analysis

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

    The Importance Of Inflation And GDP

    Learn the underlying theories behind these concepts and what they can mean for your portfolio.
  5. How does Outsourcing Work?
    Economics

    How does Outsourcing Work?

    Outsourcing is the business practice of hiring people outside a company to perform services that traditionally were performed within the company, by the business’s own employees. Companies typically ...
  6. Economics

    How A Limited Government Affects A Country's Finances

    Countries with limited governments have fewer laws about what individuals and businesses can and can’t do. What's the net result?
  7. Bonds & Fixed Income

    End of Fed's Bond-Buying Program: 7 Things To Know

    This article helps investors understand the economic and financial effects that result when a central bank (like the Fed) ends its bond purchase program.
  8. A look at the demographics of unemployment.
    Personal Finance

    Where Unemployment Hits Hardest

    A look at the demographics of unemployment, and what that means for workers around the nation.
  9. Economics

    Who runs the Bureau of Labor Statistics?

    The Bureau of Labor Statistics tracks the nation's working conditions and provides critical data to the public, government and businesses.
  10. Investing Basics

    How Does Goodwill Affect Financial Statements?

    Goodwill is a bit of a paradox--intangible, yet it is recorded as an asset on the purchasing company's balance sheet.

You May Also Like

Hot Definitions
  1. Trust Fund

    A trust fund is a fund comprised of a variety of assets intended to provide benefits to an individual or organization. The ...
  2. Christmas Tree

    An options trading strategy that is generally achieved by purchasing one call option and selling two other call options at ...
  3. Christmas Club

    A short-term savings account that usually pays out the full account balance to its account holders once each year, right ...
  4. Boston Snow Indicator

    A market theory that states that a white Christmas in Boston will result in rising stock prices for the following year. For ...
  5. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
  6. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
Trading Center