Difference between employment and work

At the suggestion of some of our users we will make a very general explanation of the difference between work and employment, concepts that although they are usually assimilated, in economics they are very different.

Work, in economic terms, is one of the productive factors that together with capital and land [means of production], allow us to generate wealth.

Work is the measure or representation of the physical or mental effort that man makes on the means of production to generate wealth, to produce goods and provide services.

Employment, on the other hand, refers to the rate of the employed population, to the part of the population that performs a paid job.

The difference is basically that work is the economic activity that a person performs, and employment is the same activity but remunerated.

Thus, you cannot consider employment when a person does a job in their own home. Although in this case a physical activity is being developed, that is, it is working, it is not remunerated, and therefore it cannot be considered employment.

From employment a much more important concept is derived; Unemployment. Unemployment refers to the percentage of the economically active population that is unemployed, that is to say that it does not carry out any paid activity.

Now, it is understood as economically active population, the set of people who are able to work, who are able to develop or exercise a certain job.

In this order of ideas, not all work can be considered employment, since if the work developed is not remunerated, there is no employment, what there is free work.

Commonly the remuneration of work is known as salary, but there are other forms of remuneration and that consequently convert the work into employment, as is the case of people who work for their own account, in which case they obtain a dividend or profit. From his job.