Economists say the employment-to-population ratio for prime-working-age adults can be more reliable than the unemployment rate
By Mike Maciag | Governing
One of the most telling measures of a state’s economy is the employment-to-population ratio for those in their prime-working years.
The U.S. Department of Labor reports that an average of 77.9 percent of Americans between the ages of 25 and 54 were employed in 2016. That’s an improvement from a few years ago. But federal data released last week suggests several states, particularly in the South, are lagging behind.
Economists consider the prime-working age employment-to-population ratio a fairly reliable economic indicator that doesn’t suffer from the same obvious shortcomings of more commonly cited measures. The unemployment rate, for instance, doesn’t factor in those who’ve given up their search for work. Meanwhile, retiring baby boomers and increasing college enrollment somewhat skew the total employment-to-population ratio for all individuals.
