We explain what the economically active population is and the characteristics of the employed and economically inactive population.
What is the economically active population?
The economically active population, also called “labor force”, corresponds to the number of people who are in the working or productive stage of life. This group includes people who have a job and those who do not but are looking for one.
It is the part of the population capable of contributing goods or services to the market because it meets certain variables such as age range, level of education, work experience, among others. It is made up of two large groups:
- Employed population. The one who has a job.
- Unemployed population It is the part of the population that does not have a job but is actively searching. It is also called “open unemployment.” It should not be confused with the economically inactive population.
See also: Urban population
Employed population
The employed population is the part of the economically active population that has at least one economic activity. The criterion of one hour worked allows statistical comparability with other countries and makes it possible to capture the multiple informal or low-intensity occupations of a territory.
The number of hours of normal occupation is considered between 35 and 45 hours per week. But within the employed population, two subgroups are also included although they do not have that characteristic:
- Hourly under-employed population It is the part of the population that works less than thirty-five hours per week.
- Overemployed population It is the part of the population that works more than forty-five hours a week.
Furthermore, the employed population is differentiated according to the productive sector in which they invest their working hours. This classification allows the study and analysis of the economic production of a population. The different sectors are:
- The primary sector It covers economic activities related to the extraction of natural resources. Examples of the primary sector are agriculture, livestock, mining and hydrocarbon exploitation, among others.
- The secondary sector It covers economic activities that transform raw materials into finished products, adding value to goods. Examples of the secondary sector are industrial activity (considered light and heavy) that offers furniture, electronics, footwear, processed foods, clothing, among others.
- The tertiary sector It covers economic activities aimed at providing services (and not the production of goods or merchandise). Examples of the tertiary sector are commerce, transportation, public or private services, among others.
- The quaternary sector It covers economic activities related to the provision of services focused on intellectual, knowledge and research work. Examples of the quaternary sector are consulting, technology research and development, financial planning, etc.
- The quinary sector It covers non-profit activities that generate a contribution to society from education, health, recreation, etc. Examples of the quinary sector are the actions of Civil Society Organizations (CSOs), leaders in technology, people of influence or social leaders, official government work, among others.
Economically inactive population
The economically inactive population It is the part of the population that does not have a job or trade, nor is it looking for one. It includes groups of people with the following characteristics:
- Young people sixteen years of age or older, who are not classified as employees.
- Students of any category of study (elementary school, graduate school, etc.) who are not employed.
- Retirees or pensioners.
- Volunteering in social or charitable activities.
Continue with: Absolute population
References
- «Definitions» in EntreRios.gov.ar
- «Active population» on Wikipedia.org
- “Economically active population” at Stats.oecd.org
- «Definitions and concepts in EstadisticaCiudad.gob.ar
- “Glossary” at Sede.sepe.gob.es
- «Economic sectors» in ActivitiesEconomicas.org
