The occupancy rate it can also be known as the employment rate, it is a ratio used to calculate the percentage of people who are working in relation to the totality of the population that understands the working age, considering that this active population is one that, despite being over 16 years of age, is self-employed.
With this type of occupational rate, can be used to measure the level of economic development and employment within a given population. At present, due to the economic crisis that is being experienced worldwide, it must be recognized that the employment rates in a large number of countries have recorded historical milestones that have harmed the situation.
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In this article you will find:
How does the National Institute of Statistics define the Occupancy Rate?
The occupancy rate has the ability to measure the quotient between the number of people who work and who are within the age range between 16 and 64 years and the entire population that has the same range of age.
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Its mission is to calculate different values such as the activity or employment rate based on the reasoning of the autonomous communities, age and sex, among others.
The National Institute of Statistics (INE) defines this term as the number of people 16 years of age or older who work in a job, either as an employee or if they carry out any activity on their own.
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One of the most relevant benefits of this percentage or statistical rate is to generate information regarding the occupation of women, for their development in the professional field and to help improve the perspective that they carry out at the labor.
Through the years, the female employment rate it has been growing in developed countries, which has allowed them to level with men and thus achieve increased social equality between men and women.
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This reality has created an outstanding milestone within the level of civilization and related to the country, in the same way the degree of leadership regarding the fundamental rights and duties facing other countries that have not yet practice.
How to calculate the Occupancy Rate?
In order to perform the calculation of the occupancy rateof a population, it is necessary to have the knowledge of a quantity of important data about the population and its level of employment.
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The first thing to know is the number of people who are within the working age, which was already mentioned above that they must understand between 16 and 64 years of age. In order to have knowledge of this data, the employed population, the inactive population and the unemployed population have to be added.
Then, it is necessary to know the number of people who are working at the time the calculation is being made, regardless of whether they are self-employed or employed.
Once the value of all this data is known, the rate or percentage can be calculated of the population that is working, through the application of the formula presented below:
Employed population rate = (Number of employed / Population of working age) x 100
Examples of calculating the Occupancy Rate
Here is a simple example of the calculation of the employment rate:
They will be calculated:
- Active population: 10,000,000
- Total unemployed population: 2,000,000
- Inactive population: 7,000,000
The first thing to do is calculate the total number of people of working age:
PET = Active population + Unemployed population + Inactive population
PET = 10,000,000 + 2,000,000 + 7,000,000 = 19,000,000
The second thing that has to be done is the procedure of calculate the employed population rate or occupation percentage:
Employed population = (10,000,000 / 19,000,000) x 100 = 52.6%
With these results, it is concluded that for every 100 people 52.6% are working or employed.
Difference between the Employment Rate and the Activity Rate
The main difference between occupancy rate and activity rate, refers to the numerator found in the calculation formula of each one of them.
More simply, the Activity rate takes into account the active population in order to measure a work situation in a given country, It is about making the sum of the population that is employed with the population that is stop.
On the contrary, the employment rate it only incorporates the employed population, without taking into account the population that is unemployed or unemployed over the total population of working age.
