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What is Employment Vulnerability Index | Definition and Current Stats?

employment vulnerability index

Overview of Employment Vulnerability Index

The Employment Vulnerability Index is a measure of the risk of job loss in a given industry or occupation. It takes into account factors such as the number of jobs in an industry that are at risk of being automated, the likelihood of automation, and how sensitive an industry’s or occupation’s workforce is to changes in economic conditions. The employment vulnerability index can help you identify industries and occupations that are at risk of job losses and plan for your career accordingly.

What is the employment vulnerability index?

The employment vulnerability index (EVI) is an employment measure that calculates employment rates for specific population groups in a given year and expresses them as percentages of the employment rate in the overall population. The index shows the employment-to-population ratio of different groups relative to what would have been expected based on their age and educational attainment alone.

The EVI can be used as a predictor of likely employment instability, and it provides an effective method for quantifying employment security and evaluating employment policies at the aggregate and individual levels. The employment vulnerability index can be used by individuals to assess employment security, by firms to evaluate employment policies and practices, and at the national level for international comparisons of employment stability.

What are the employment vulnerabilities volumes over time?

The employment vulnerability index (EVI) for those who are not in employment, work, or education by age and the number of hours they want to work is published annually. The index for those who are inactive falls broadly steadily over time with a slight reduction.

The employment vulnerability index uses employment, education, and demographics surveys to provide an employment score and an underemployment score for each economy. 

There are two components in the calculation of Eva values: employment score and underemployment score. The employment score is calculated obtaining employment per capita by adding employment in the non-agricultural sector, agriculture employment, and informal sector employment. The underemployment score is calculated by multiplying the employment rate by employment elasticity.

The employment vulnerability index can be derived from each economy’s employment score and underemployment score. While employment vulnerability refers to a microeconomic concept, employment score is a macroeconomic indicator. The employment vulnerability index is thus an employment score weighted by underemployment level in each economy.

How has the employment vulnerability index changed in employment?

The employment vulnerability index (EVI) is an employment indicator that measures employment prospects for people who are not in employment, work, or education. The EVI does not measure employment prospects for full-time students or retired people.

Employment vulnerability refers to employment status factors that impede employment. It is usually measured by employment security, employment stability, skill level, profession type, education level, and the nature of work.

The employment vulnerability index has changed among employment because people are not working in their field of expertise anymore. Additionally, there is a shift towards part-time jobs rather than full-time employment. People are switching between employment types and employment security is the lowest it has been in a century.

The EVI is currently low because many people work part-time, but most of their income comes from government assistance programs or family members. Additionally, employment instability increases when there is a high employment disruption with employment rates and employment transitions. For instance, employment disruptions and employment to employment transition only used to be 1-2% in the past; however, they are 10-12% at the current time.

With unemployment rates increasing globally and employment disruption rates increasing in the U.S., it is difficult to see how the employment vulnerability index will improve in employment.

How is the employment vulnerability index calculated?

Calculating an employment vulnerability index requires two sets of data: the first on employment changes, and the second on unemployment levels. Let’s see how employment transitions are measured, with the assumption that readers have a basic understanding of employment and unemployment data.

Employment transitions refer to the movement of individuals who were employed in a previous period, either becoming unemployed (downturn employment) or finding employment (upturn employment).

Unemployment is measured as the number unemployed divided by the labor force: “Number unemployed / Labor force”. Hence employment transitions are employment changes divided by employment. 

This can be written as employment transition = employment change/employment.

The employment transition is thus scaled using the average employment level, to account for changes in employment that are not due to employment instability. The EVI is calculated as “Employment transition/employment change per period”.

Under-employment stability, employment transitions should be close to the average employment level (employment change would equal zero). The job losses employment transitions will be above the employment level, while employment stability would result in employment transitions below employment. This gives an indicator of how employment stability is changing over time.

What are the benefits of the employment vulnerability index?

An employment duration index (EDI) is an employment statistic that measures employment stability or job security. It can be useful because it estimates whether someone has a job and how long they will likely remain in that employment. EDI’s can be estimated by linking employment-related social security records to yearly employment data.

This employment duration index is one of many employment indices that can be used to assess changes in employment over time and the effects of changing economic conditions on employment stability.

There are at least three main benefits of the employment vulnerability index: 

1) it allows for comparisons between regions, 

2) it gives an indication of employment risk, and 3) it shows employment trends.

An employment duration index allows for comparisons between regions. For instance, the employment vulnerability index can be used to compare employment stability in two different regions or the change in employment security over time within a region. This information could be particularly useful when choosing where to live or invest money because it provides information on employment stability/risk.

A lower EVI suggests a region has more stable employment, while a higher EVI indicates there may be less employment security in the region.


The Employment Vulnerability Index is a helpful tool for understanding the economic health of our communities and families. It provides an accurate assessment of how vulnerable we are to employment disruption, both in terms of jobs and income. If you’re looking to get more information on this index or want help implementing it in your organization, please contact us.

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