Enter the total number of people employed and the total number of people in the labor force to determine the employment rate.
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Employment Rate Formula
The following formula is used to calculate the employment rate (the share of the labor force that is employed).
ER = \frac{E}{LF}\times 100- Where ER is the employment rate (%)
- E is the total number of people employed
- LF is the total number of people in the labor force (employed + unemployed who are available for work and actively seeking work)
To calculate an employment rate, divide the number of people employed by the number of people in the labor force.
Employment Rate Definition
An employment rate (as used here) is defined as the percentage of the labor force that is employed. This measure equals 100% minus the unemployment rate when both are based on the same labor force.
Employment Rate Example
How to calculate employment rate?
- First, determine the total number of employed individuals.
For this example, we will say the total number of people employed is 1,000.
- Next, determine the total labor force.
For this example we will say the labor force is 2,000.
- Finally, calculate the employment rate.
Using the formula above, we find the employment rate to be: 1,000/2,000 * 100 = 50%.
FAQ
The employment rate is a percentage of the total labor force that is currently employed.
The labor force includes people who are employed plus people who are unemployed, available for work, and actively seeking work (it excludes those not in the labor force).
