Australia Participation Rate

Australia Participation Rate reflects the rate of labor-force age people who are either employed or are actively seeking employment, in relation to the total labor force (persons aged 15 years and over).

The indicator is considered a metric of the active part of the nation's entire labor force. For example, many individuals may get discouraged in economic recession conditions and stop seeking employment. Thus such individuals are excluded from the economically active population. Statistics confirm this logic: during recession, the share of economically active population is noticeably reduced. Also, the economically active population does not include housewives, pensioners and other categories of people who do not work either at will or in connection with certain circumstances.

The indicator is usually analyzed along with the unemployment rate, because people categorized as unemployed may not be active labor market participants. On the other hand, unemployed people may have income and participate in economic processes. This category may include pensioners who spend their savings, or students trying to gain experience to enter the labor market later.

The proportion of economically active population may be reduced due to structural social changes, not only due to the overall economic health. For example, the increase in the birth rate leads to a decrease in the number of working women.

Parallel interpretation of the participation rate and the unemployment rate provides for a better understanding of general employment trends in the economy.