©  Anna Dziubinska / Unsplash
© Anna Dziubinska / Unsplash

Statistics on the population and labour force

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Introduction

The working-age population is a central concept in labour statistics. Changes in the size of the working-age population can impact significantly the labour market and the economy. A growing working-age population provides opportunities for economic growth while at the same time creating challenges for job creation and integration of new labour market entrants. By contrast, a shrinking working-age population can create challenges for economic growth, competitiveness, population dependency, etc.

Not everyone that is part of the working-age population, however, is actively engaged in the labour market. Some have jobs, others are seeking jobs, yet others are discouraged, engaged solely in other activities, or not interested in the labour market. Statistics are required to enable us to understand how people are relating to the labour market and how this changes over time. These statistics require clear definitions to ensure consistency and clarity of measurement, reporting and interpretation. As defined in international standards (19th ICLS, 2013), the labour force captures those persons of working age who are actively engaged in the labour market. It is the sum of persons employed and the unemployed. Together these two groups of the working-age population represent the supply of labour for the production of goods and services in exchange for remuneration existing in a country at a given point in time.

Key indicators to monitor the working-age population and labour force include the employment-to population-ratio, labour force participation rate, as well as age dependency ratios. These are essential headline indicators of the labour market that need to be complemented with additional indicators, such as measures of labour underutilization for monitoring and to inform policy.

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