Write in a short paragraph. Analyse economically active population and employment rate as economic indicators relating to employment

Answer 1

The economically active population and employment rate are both important economic indicators that provide insights into the employment situation of a country. The economically active population refers to the number of people who are either employed or actively seeking employment. A growing economically active population indicates an increased labor force, which can be beneficial for economic growth. On the other hand, a declining economically active population may suggest a shrinking labor force and potential labor shortages. Meanwhile, the employment rate measures the proportion of the labor force that is employed. A high employment rate indicates a strong job market and suggests that a large share of the labor force is gainfully employed. Conversely, a low employment rate may signal a weak job market, resulting in a larger proportion of the labor force being unemployed or underemployed. Hence, monitoring both the economically active population and the employment rate provides valuable insights into the overall employment conditions of an economy.