What is Employment Rate ?
‘Employment Rate’ refers to the ratio of people employed versus the population of the location. In other words, it helps us understand the number of people in the working age bracket who are employed currently.
As per the ILO (International Labour Organization), an individual might be considered ‘employed’ if he or she has been able to work for at least an hour in a week and procured a reasonable compensation for the work done.
The employment rate helps one judge the health of the job market of a location as a higher employment rate also has a positive impact on the GDP of the country. In general, if the employment rate is more than 70%, it is considered ’healthy’ for the economy. Similarly, anything below 50% employment rate means that there is some issue with the job market which needs to be addressed immediately.