Rate capacity utilization
Total of all employee utilization rates / Total number of employees. So if we imagine that Leslie works for a very small company with five billable employees, we can calculate their capacity utilization rate as: (75% + 80% + 60% +85% + 70%) / 5 = 370% / 5 = 74% (The first five percentages in this formula represent the five employees’ utilization rates) This means that the average utilization rate at Leslie’s company is 74%. The capacity utilization rate is an important figure because it Capacity Utilization in the United States decreased to 76.78 percent in January from 77.09 percent in December of 2019. Capacity Utilization in the United States averaged 80.21 percent from 1967 until 2020, reaching an all time high of 89.39 percent in January of 1967 and a record low of 66.69 percent in June of 2009. The average economy-wide capacity utilization rate in the US since 1967 was about 81.6%, according to the Federal Reserve measure. The figure for Europe is not much different, for Japan being only slightly higher.