Mark,
The following is my understanding of how this works.
Your FIND action found 4 objects and put them in context.
Your EmployeeLocations.Used=COUNT... action was executed on only 1 EmployeeLocations record (the first one found?) and all 4 records in the context were updated with that result.
If you changed your FIND to:
FIND EmployeeLocations WHERE EmployeeLocations.OB_Country=Country IN BATCHES OF 1
I believe you would have gotten the results you expected because then the EmployeeLocations.Used=COUNT... action would have been executed 4 times, once for each record found.