Enter the total number of people employed and the total population that is included in the labor force to determine the employment rate.

- Natural Rate of Unemployment Calculator
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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%.

## FAQ

**What is an employment rate?**

The employment rate is a percentage of the total labor force that is currently employed.

**What is the labor force?**

The labor force includes all people that are eligible and able to work, but that are also actively seeking work.

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