The economically active population constitutes the labor force of a country.
The concept of economically active population is used to refer to the group of individuals who have a job or who do not have a job but are looking for one . It can be said, therefore, that the economically active population is made up of all employed and unemployed people in a region.
It is common for the notion to be associated with the idea of workforce . This is because the economically active population includes those who are able to carry out an activity to enable the production of goods and services .
How the economically active population is determined
Also mentioned with the acronym PEA , the economically active population is made up of all the inhabitants who are of working age (that is, children and the elderly are excluded, regardless of whether in specific cases they carry out some type of activity. labor). Those who make up this broad age group constitute the EAP, whether they have a job or are looking for one.
In this way, in the economically active population a distinction can be made between the employed and the unemployed or unemployed . The unemployment rate, in this framework, represents the percentage of the EAP that is looking for work but cannot find it.
As can be seen, the determination of the economically active population depends on what the "working age" is, which is usually considered from a legal point of view. The way you understand what a job search consists of may also vary.
The economically active population includes employed workers and those who are unemployed but looking for work.
Associated notions
When carrying out a study on the economy or labor market of a region, multiple variables are analyzed and different concepts are used that are related to the definition of the economically active population.
We can refer, for example, to the underemployed population . This sector is made up of individuals who work less than 35 hours a week but aspire to work longer .
On the other hand, just as the unemployment rate is calculated considering the unemployed population in the economically active population, the activity rate shows what percentage the economically active population represents within the total population.
It is also important to clarify that the unemployed population does not include those who carry out temporary activities while looking for another job or employees who earn less than what is stipulated as minimum and vital remuneration . Nor to people who, in the absence of opportunities , are no longer actively seeking employment.
Countries with the largest economically active population
The size of the economically active population is closely linked to the total number of inhabitants, although different demographic variables affect this relationship. A city of 1,000 inhabitants with 60% of its inhabitants over 65 years of age may have a smaller economically active population than a town of 600 inhabitants that has 85% of its inhabitants of working age, to mention one possibility.
The figures position China as the country with the largest workforce. Behind them are India and the United States , completing the podium of nations that have the largest economically active population .