Sunday, September 22, 2013

Employment rates


The employment rate of a country is in many ways a better indicator of the state of employment than the unemployment rate. For example, in 2010, the US had an unemployment rate of almost 10%, while the employment rate (for those between 15 and 64) was about 67%, according to the OECD. 

Some other figures (latest unemployment rate - employment rate in 2010):

Switzerland       3.1% and 78.6%
Canada             7.2% and 71.5%
Germany           5.3% and 71.1%
U.K.                 7.7% and 69.5%
U.S                  7.4% and 66.7%
France              11%  and 64%
Mexico              5.1% and 60%
Spain              27.2% and 58.6%
Turkey              8.1% and 46.6%

Unemployment rates are notoriously unreliable because states define them in different ways.

People who choose not to work, or have retired early, or live off their investments, or have just dropped out of the workforce and no longer seek employment, make up most of the difference between the two rates. In the US in 2010, that difference was (100 - (67+10)) = 23%. In Turkey, I wonder how the 45% difference is made up?


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