Enter the total number of people employed and the total population that is included 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 of a country or area.
ER = E / LF *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
Employment Rate Definition
An employment rate is defined as the total percentage of people employed out of a possible population.
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%.
The employment rate is a percentage of the total labor force that is currently employed.
The labor force includes all people that are eligible and able to work, but that are also actively seeking work.
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