Employment-to-population ratio
Encyclopedia
The Organization for Economic Co-operation and Development defines the employment
Employment
Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...

 rate
as the employment-to-population ratio. This is a statistical ratio
Ratio
In mathematics, a ratio is a relationship between two numbers of the same kind , usually expressed as "a to b" or a:b, sometimes expressed arithmetically as a dimensionless quotient of the two which explicitly indicates how many times the first number contains the second In mathematics, a ratio is...

 that measures the proportion of the country's working-age population (ages 15 to 64 in most OECD countries) that is employed. According to the International Labour Organization
International Labour Organization
The International Labour Organization is a specialized agency of the United Nations that deals with labour issues pertaining to international labour standards. Its headquarters are in Geneva, Switzerland. Its secretariat — the people who are employed by it throughout the world — is known as the...

, a person is considered employed if they have worked at least 1 hour in "gainful" employment in the most recent week.

Use

The ratio is used to evaluate the ability of the economy to create jobs and therefore is used in conjunction with the unemployment rate for a general evaluation of the labour market stance. Having a high ratio means that an important proportion of the population in working age is employed, which in general will have positive effects on the GDP per capita. Nevertheless, the ratio does not give an indication of working conditions, number of hours worked per person, earnings or the size of the black market. Therefore, the analysis of the labour market must be done in conjunction with other statistics.

To calculate the employment-to-population ratio, one must first calculate the number of individuals in working-age, that is, over 16 years, and collect data on the number of employed people.

Employment-to-population ratio in the world

In general, a high ratio is considered to be above 70 percent of the working-age population whereas a ratio below 50 percent is considered to be low. The economies with low ratios are generally situated in the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...

 and North Africa
North Africa
North Africa or Northern Africa is the northernmost region of the African continent, linked by the Sahara to Sub-Saharan Africa. Geopolitically, the United Nations definition of Northern Africa includes eight countries or territories; Algeria, Egypt, Libya, Morocco, South Sudan, Sudan, Tunisia, and...

.

Employment-to-population ratios are typically higher for men than for women. Nevertheless, in the past decades, the ratios tended to fall for men and increase in the case of women, which made the differences between both to be reduced.
Employment-to-population ratio in OECD countries

Persons aged 15-64 years (percentages)
Country 1994 2001 2002 2003 2004 2005
Australia 66.0 69.0 69.4 70.0 70.3 71.6
Austria 68.3 68.0 68.5 68.7 67.8 68.6
Belgium 55.7 59.7 59.7 59.3 60.5 61.0
Canada 67.0 70.8 71.4 72.2 72.5 72.5
Czech Republic 69.2 65.3 65.7 64.9 64.2 64.8
Denmark 72.4 75.9 76.4 75.1 76.0 75.5
Finland 59.9 67.7 67.7 67.4 67.2 68.0
France 58.4 62.0 62.2 62.5 62.4 62.3
Germany 64.5 65.8 65.3 64.6 65.0 65.5
Greece 54.1 55.6 57.7 58.9 59.6 60.3
Hungary 53.5 56.2 56.2 57.0 56.8 56.9
Iceland 78.5 84.6 82.8 84.1 82.8 84.4
Ireland 51.9 65.0 65.0 65.0 65.5 67.1
Italy 51.5 54.9 55.6 56.2 57.4 57.5
Japan 69.3 68.8 68.2 68.4 68.7 69.3
Korea 62.8 62.1 63.3 63.0 63.6 63.7
Luxembourg 60.2 63.0 63.6 62.7 62.6 63.6
Mexico 58.7 60.1 60.1 59.6 60.8 59.6
Netherlands 63.9 72.8 73.1 72.7 72.0 ..
New Zealand 68.0 71.8 72.4 72.5 73.5 74.6
Norway 72.2 77.5 77.1 75.8 75.6 75.2
Poland 58.3 53.5 51.7 51.4 51.9 53.0
Portugal 64.0 68.6 68.1 67.1 67.8 67.5
Slovak Republic 59.8 56.9 56.9 57.7 57.0 57.7
Spain 47.4 58.8 59.5 60.7 62.0 64.3
Sweden 71.5 75.2 74.9 74.3 73.5 ..
Switzerland 75.6 79.2 78.9 77.9 77.4 77.2
Turkey 52.4 47.8 46.7 45.5 46.1 45.9
United Kingdom 68.7 72.5 72.3 72.6 72.7 72.6
United States 72.0 73.1 71.9 71.2 71.2 71.5
EU-15 59.9 64.1 64.3 64.4 64.9 65.4
EU-19 59.9 62.9 62.9 63.0 63.5 64.0
OECD Europe 59.4 61.4 61.2 61.1 61.5 61.9
Total OECD 64.0 65.5 65.1 64.9 65.3 65.5

Source: OECD Employment Outlook 2006. Statistical Annex, p. 248.http://www.oecd.org/dataoecd/53/15/36900060.pdf
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