Country Context
Two rates. One early signal.

The Economic Sustainability Rating multiplies a country’s inflation rate by its unemployment rate. It is InsidEntity’s first read on the economy a company operates in. A lower reading is better.

●Inflation × unemploymentFive bands, Benchmark to UnsustainableCountry context, not personalised financial advice
See every country’s live ESR →
The formula

Inflation × unemployment

Both rates move before the damage shows up in earnings, household finances or credit. Multiplying them means a country only reads well when both are under control.

01
Inflation erodes income
Rising prices shrink what every household earns.
02
Unemployment removes it
A job lost takes the income away altogether.
03
Multiplied, not added
One high rate is enough to lift the reading. Both low is the only way to score Benchmark.
Worked example: South Africa
4.4% × 33.6% = 147.8
Inefficient today. At 4.5% inflation the same unemployment gives 151.2, Unsustainable.
The scale

Five bands. Lower is better.

The ESR runs the opposite way to InsidEntity’s company ratings. There is no upper cap: Venezuela read 1,976 when this page was last updated.

Benchmark
1 to 25
Efficient
26 to 50
Stable
51 to 100
Inefficient
101 to 150
Unsustainable
151 and above
Latest readings

Seven economies

Last updated 24 September 2026 (Japan 18 September), on the latest official releases then available. Each reading moves when a new release comes out: click a country for its live ESR.

ChinaBenchmark
4.2
0.8% × 5.3% (Aug; unemployment is the surveyed urban rate)
Read the analysis →
JapanBenchmark
4.6
1.9% × 2.4% (CPI Aug, unemployment Jul; published 18 Sep)
Read the analysis →
United StatesBenchmark
13.9
3.4% × 4.1% (Aug)
Read the analysis →
15.2
3.1% × 4.9% (CPI Aug, unemployment May to Jul)
Read the analysis →
AustraliaBenchmark
16.1
3.5% × 4.6% (CPI Jul, unemployment Aug)
Read the analysis →
CanadaBenchmark
19.2
3.0% × 6.4% (Aug)
Read the analysis →
South AfricaInefficient
147.8
4.4% × 33.6% (CPI Aug, unemployment Q2)
Spent three years in Unsustainable to 2023, returned to it in August 2026, then eased to Inefficient in September.
Read the analysis →

Data used: headline consumer price inflation and the official unemployment rate from each national statistics agency; China uses the surveyed urban rate. Readings are shown to one decimal place and inputs can refer to different months where release schedules differ. The InsidEntity platform’s country pages are the authoritative record.

How it compares

ESR vs the Misery Index

The best-known measure of the same two pressures is the Misery Index, popularised by economist Arthur Okun, which adds inflation to unemployment. The ESR multiplies them.

01
Misery Index: add
South Africa: 4.4 + 33.6 = 38.0. Canada: 3.0 + 6.4 = 9.4. A single high rate dominates the total.
02
ESR: multiply
South Africa: 147.8. Canada: 19.2. Low inflation can offset high unemployment, and the gap between strained and calm economies widens.
Where it fits

Macro first, then the company

01
Economic Sustainability Rating
The economy the company operates in.
02
The governance structure of the company.
03
Health Status Rating
The company’s overall risk profile.
04
The company’s audited financial statements.
On the blog

ESR analysis

01
An ESR outlook on six economies.
02
Still Benchmark. South Africa back in Unsustainable.
03
Where the pressure is not.
04
Why 6.4% unemployment weighs more.
Questions

Frequently asked

What is the Economic Sustainability Rating?

The ESR is InsidEntity's country-level signal of economic pressure. It multiplies a country's inflation rate by its unemployment rate and places the result in one of five bands from Benchmark to Unsustainable.

Is a higher or lower ESR better?

Lower is better. A Benchmark reading of 1 to 25 means low combined pressure from inflation and unemployment. This is the opposite of InsidEntity's company ratings, where a higher score is better.

How is the ESR different from the Misery Index?

The Misery Index adds inflation and unemployment. The ESR multiplies them, so a country only reads well when both rates are low, and strained economies separate more clearly from calm ones.

Does the ESR measure government debt?

No. The ESR measures pressure on households and businesses. A country can carry high public debt and still read Benchmark, which is why InsidEntity shows government debt alongside the ESR rather than inside it.

How often is the ESR updated?

Each reading uses the latest official inflation and unemployment releases, which most countries publish monthly or quarterly. A reading changes when either input changes.

Independent research. Not financial advice. Know more. Risk less. Decide better.
Sources: InsidEntity Economic Sustainability Rating methodology; national statistics agencies for inflation and unemployment; Institute of International Finance, Global Debt Monitor, 23 September 2026.