Calculate employment rate, unemployment rate, employment-to-population ratio, labor force participation rate, and jobs needed to reach target unemployment.

Enter the two counts.

Use the same population, period and count unit throughout. The employed share here uses the labor force; the population ratio uses working-age population. Projections are scenarios, not forecasts.

Employment Rate Formula

The following formula is used to calculate the employment rate (the share of the labor force that is employed).

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 (employed + unemployed people, including active job seekers and people on temporary layoff awaiting recall)

To calculate the employed share of the labor force, divide employed people by the labor force and multiply by 100. Use the separate population-ratio mode when the denominator is working-age population.

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?

  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%.

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 people who are employed plus people who are unemployed (including active job seekers and people on temporary layoff awaiting recall) (it excludes those not in the labor force).