Global Payroll to Population Employment Rate at 27% for 2011

September 6, 2012 • Daily Email Recap

The following information was unveiled by Gallop Inc. on Sept. 5th, 2012. Gallop has created a new picture of global employment, which uses total global population in the 15+ age bracket (not just the number currently in the known workforce) as the basis for understanding employment percentages.

Global Payroll to Population Employment Rate at 27% for 2011

Sub-Saharan Africa trails other regions, Northern America leads

See: http://www.gallup.com/poll/156944/global-employment-p2p-wednesday-story.aspx#1

WASHINGTON, D.C. — Twenty-seven percent of the world’s adults were employed full time for an employer in 2011, according to Gallup’s new “Payroll to Population” metric. This new measure estimates the percentage of the entire 15 and older population — not just those currently in the workforce — who are employed full time for an employer for at least 30 hours per week. Worldwide, the Payroll to Population percentage was highest in Northern America, at 41%, and lowest in sub-Saharan Africa, at 12%.

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Adults who are self-employed, working part time, unemployed, or out of the workforce are not counted as payroll-employed in the Payroll to Population metric. Gallup finds this new measure of employment to be more strongly related to GDP per capita than any other employment metric, including unemployment, which is traditionally the gold standard employment measure but relates little to GDP.

Payroll to Population provides a more accurate picture of the true economic situation in a country because it is not affected by changes in the workforce participation rate. When jobs are scarce, people may drop out of the workforce. This can actually lead to an improvement in unemployment rates, even though fewer people are working. Payroll to Population, on the other hand, declines when fewer people are working and rises when more people find full-time work.

Payroll to Population Lower in Developing Countries

Sweden, Belarus, and Israel had the highest Payroll to Population employment rates in the world in 2011 and were the only countries where the percentage was 50% or higher. Overall, 19 countries had a Payroll to Population percentage that was 40% or higher. Most of the countries at the top of the list had a large percentage of adults employed in the services sector, which includes government jobs.

To read the full article, please click here: http://www.gallup.com/poll/156944/global-employment-p2p-wednesday-story.aspx#1


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