Capacity employed意思

"Capacity employed" is an economic term that refers to the amount of productive capacity that is being used within an economy, industry, or organization. It is a measure of how much of the available resources (such as factories, machinery, and labor) are being utilized to produce goods and services.

In simpler terms, capacity employed is the level of activity of a productive facility or an economy as a whole. It is often expressed as a percentage of maximum potential output, which is known as "capacity utilization." For example, if a factory has the capacity to produce 100 units per hour but is currently producing 80 units per hour, its capacity employed would be 80%.

Capacity employed is an important metric for understanding the efficiency and health of an economy or a business. High capacity employed levels can indicate that an economy is operating close to its maximum potential, which can lead to higher levels of economic growth and prosperity. Conversely, low capacity employed levels can indicate that there is excess capacity in the economy, which can lead to lower levels of economic growth and potential waste of resources.