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Employment-To-Population Ratio
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Definition of 'Employment-To-Population Ratio'
A macroeconomic statistic that takes the ratio of the total workin" a"e of the la%or force currentl* em!lo*ed to the total
workin" a"e !o!ulation of a re"ion7 munici!alit* or countr*. It is calculated %*:
'he workin" force and !o!ulation onl* include individuals within the workin" a"e.
Investopedia explains 'Employment-To-Population Ratio'
(ome restrictions in the calculation could come from not includin" %lack market la%or7 workers under or over the workin" a"e
limits7 and hours worked. 'he em!lo*ment ratio is also su%;ect to some mani!ulation %* re!ortin" a"encies as well7 and ma* %e
skewed in order to "ive the !erce!tion that an econom*7 %ased on this metric7 is !erformin" %etter then it reall* is.
For e9am!le7 the numerator does not account for individuals who are currentl* enrolled in an educational institution and not
workin". 'hese students are unem!lo*ed %* choice %ut it still results in a lower calculation.
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Page 1 of 2 Employment-To-Population Ratio Definition | Investopedia
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Page 2 of 2 Employment-To-Population Ratio Definition | Investopedia
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