Employment-To-Population Ratio

What is the 'Employment-To-Population Ratio'

The employment-to-population ratio is 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.

BREAKING DOWN '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. Working-Age Population

    The total population in a region, within a set range of ages, ...
  2. Dependency Ratio

    A measure showing the number of dependents (aged 0-14 and over ...
  3. Normal Retirement Age - NRA

    The age at which people can receive full benefits upon leaving ...
  4. Attained Age

    1) The age at which the beneficiary of an insurance policy, retirement ...
  5. Issue Age Policy

    An insurance policy whose rate is dependent on the age of the ...
  6. Labor Market

    The labor market refers to the supply and demand for labor, in ...
Related Articles
  1. Professionals

    Key Labor Market Indicators

    CFA Level 1 - Key Labor Market Indicators
  2. Economics

    Leading Economic Indicators: U.S. Bureau of Labor Monthly Stats

    The Bureau of Labor Statistics' monthly employment figures are a key economic indicator. Here's how they work.
  3. Investing

    How Labor Force Participation Rate Affects U.S. Unemployment

    While a falling unemployment rate sounds like a good thing, it can actually be indicative of people leaving the labor force because they can't find a job.
  4. Economics

    4 Global Economic Issues of an Aging Population

    Discover why dramatic increases in life expectancy is creating significant socioeconomic challenges for many advanced industrialized nations.
  5. Investing News

    3 Reasons to Invest in Asia's Emerging Markets

    Emerging markets in Asia aren't on the rise at the moment, but they're best days are likely to be in the future. Here's why.
  6. Economics

    How Demographics Drive The Economy

    Demographics can have a profound effect on the economy. An aging population coupled with a declining birthrate points to a decline in economic growth.
  7. Economics

    How The Unemployment Rate Affects Everybody

    Depending on how it's measured, the unemployment rate is open to interpretation. Learn how to find the real rate.
  8. Financial Advisors

    3 Benefits of Working Longer (and Retiring Later)

    There are many reasons why folks in their 60s may want to keep working until at least age 70. Here are three.
  9. Economics

    Calculating Days Working Capital

    A company’s days working capital ratio shows how many days it takes to convert working capital into revenue.
  10. Entrepreneurship

    1 in 5 Americans Are Working This Labor Day 2014

    Labor Day is supposed to offer beleaguered workers a day of reprieve from the daily grind. However, not everyone gets to enjoy a day off the job.
RELATED FAQS
  1. What ratios are most commonly used to judge working capital management?

    Learn about the various working capital ratios that investors and analysts consider when evaluating a company's financial ... Read Answer >>
  2. What can working capital turnover ratios tell a trader?

    Find out how to calculate and interpret a company's working capital turnover ratio. Learn why a high ratio is good but an ... Read Answer >>
  3. How does the Bureau of Labor Statistics determine the unemployment rate?

    Learn how estimates of the unemployment rate are made based on monthly surveys of American households that are conducted ... Read Answer >>
  4. What does a low working capital ratio show about a company's working capital management?

    Find out the significance of working capital management for a company and look at the working capital ratio analysts use ... Read Answer >>
  5. How do I calculate my Social Security break-even age?

    Learn why age plays an important role for when to start receiving Social Security income and how calculating break-even age ... Read Answer >>
  6. Can working capital be too high?

    Learn more about the working capital ratio, and understand how an excessively high ratio can be considered a negative in ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center