Employment Rate
The employment rate measures the percentage of the working-age population that is currently employed.
Meaning in Practice
The employment rate is calculated by dividing the number of employed individuals by the total working-age population. Unlike the unemployment rate, it includes people who are not actively seeking work. It provides a broader view of labor market participation.
Why It Matters
A rising employment rate indicates stronger labor market conditions and economic expansion. It helps assess workforce utilization and long-term growth potential. Policymakers use it to evaluate structural labor market trends.
Market Impact
Higher employment rates can support consumer spending and economic growth expectations. Strong readings may increase bond yields if inflation pressures rise. Weak data can trigger defensive positioning in financial markets.
Example
If 75 out of 100 working-age individuals are employed, the employment rate is 75 percent.