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
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.
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%.
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