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

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

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 is defined as the total percentage of people employed out of a possible population.

Employment Rate Example

How to calculate employment rate?

  1. First, determine the total number of employed individuals.

    For this example, we will say the total number of people employed is 1,000.

  2. Next, determine the total labor force.

    For this example we will say the labor force is 2,000.

  3. Finally, calculate the employment rate.

    Using the formula above, we find the employment rate to be: 1,000/2,000 * 100 = 50%.


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 is also actively seeking work.