The economic activity rate is calculated as the ratio of the labour force to the total working-age population. The labour force consists of all persons who are either employed or unemployed but actively seeking work, while the working-age population generally includes individuals above a specified minimum age, excluding those not participating in the labour market such as full-time students, retirees, or discouraged workers, depending on national definitions.[3]
Economists use the economic activity rate to assess the extent to which an economy is able to mobilize its working-age population for productive activity. Changes in the rate may reflect demographic trends, educational participation, social policies, or cyclical economic conditions. A rising activity rate is often associated with increased labour market engagement, while a declining rate may indicate population ageing, extended education, or withdrawal from the labour market during economic downturns.[4]
