Google
Thursday 
September 20, 2018 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
SAVING FUNCTION: The positive relation between household saving and household disposable income. The saving function is commonly presented as the saving line or propensity-to-saving line. The slope of this line is the marginal propensity to save, which is the proportion of any additional income used for saving. The saving function and the marginal propensity to saving play key roles in the multiplier and accelerator concepts. Because consumption is the difference between disposable income and saving, the consumption function is a complementary relation to the saving function.

Visit the GLOSS*arama


EMPLOYMENT-POPULATION RATIO:

The ratio of employed persons to the total civilian noninstitutionalized population 16 years old or older. Also termed the employment rate, the employment-population ratio is used as an alternative to the unemployment rate as an indicator of the utilization of labor resources.
Because the employment-population ratio is the ratio of employment to population, it does not suffer from underestimation problems attributable to discouraged workers and other unemployed persons that enter and exit the labor force. In particular, the unemployment rate goes up and down as people enter and exit the labor force, even though these folks have no affect on employment and production. When discouraged workers leave the labor force, the unemployment rate goes down, but the employment-population ratio does not change. When high school and college students seek jobs during the summer months, the unemployment rate goes up, even though the employment-population ratio does not change.

The calculation of the employment-population ratio is illustrated using this equation:

employment-population ratio=employed
persons
total noninstitutionalized
civilian population
x 100

Suppose that the total noninstitutionalized civilian population is 206,000 people and the number of employed persons is 133,000. The employment-population ratio is calculated as:

employment-population ratio=133,000
206,000
x 100=64.6%

The employment-population ratio is closely associated with the labor force participation rate. The labor force participation rate is the ratio of the sum of both employed and unemployed to the total noninstitutionalized civilian population. The employment-population ratio is simply the ratio of employed persons to the total noninstitutionalized civilian population.

The connection between the employment-population ratio and labor force participation rate is also noted by the general upward trend in the employment-population ratio. In the late 1940s, the employment-population ratio was in the mid-50 percent range. By the late 1990s, this rate had gradually risen to the mid-60 percent range. Much of this increase can be attributed to the increased participation of women in the labor force, which resulted from a change in the traditional role of women as housewives, stay-at-home mothers, and homemakers. The end result is that the economy has found employment for a larger fraction of the population, resulting in an increase in total production.

The employment-population ratio is also closely connected to what is termed the dependency ratio, which indicates the degree to which the entire population depends on those actively engaged in production. When the employment-population ratio increases, society has more people working and producing and thus fewer dependents not working and producing. The burden placed on each provider is less when more people do the providing.

<= EMPLOYED PERSONSEMPLOYMENT RATE =>


Recommended Citation:

EMPLOYMENT-POPULATION RATIO, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2018. [Accessed: September 20, 2018].


Check Out These Related Terms...

     | unemployment rate | Current Population Survey | Bureau of Labor Statistics | labor force | civilian labor force | employment rate | labor force participation rate | unemployment rate, measurement problems | alternative unemployment rate | employed persons | unemployed persons | not in the labor force |


Or For A Little Background...

     | unemployment | macroeconomic problems | macroeconomic goals | factors of production | full employment | business cycles | contraction | expansion | recession |


And For Further Study...

     | unemployment sources | natural unemployment | unemployment problems | unemployment reasons | unemployment, production possibilities | full employment, production possibilities | macroeconomic sectors | Bureau of Labor Statistics | gross domestic product | macroeconomic markets | resource markets | inflation | stabilization policies | government functions | underground economy | business cycle indicators |


Related Websites (Will Open in New Window)...

     | Bureau of Labor Statistics | Current Population Survey Home Page |


Search Again?

Back to the WEB*pedia


APLS

ORANGE REBELOON
[What's This?]

Today, you are likely to spend a great deal of time touring the new suburban shopping complex seeking to buy either a large stuffed brown and white teddy bear or a replacement washer for your kitchen faucet. Be on the lookout for gnomes hiding in cypress trees.
Your Complete Scope

This isn't me! What am I?

Mark Twain said "I wonder how much it would take to buy soap buble if there was only one in the world."
"No amount of business school training or work experience can teach what is ultimately a matter of personal character. "

-- Truett Cathy, Chick-fil-A Inc. founder

MPP
Marginal Physical Product
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2018 AmosWEB*LLC
Send comments or questions to: WebMaster