observes is given as translation example but not accepted as translation o.O
Indeed. The dictionary hints give as possible translations: "spectators, observers, member of the audience (plural)".
If you occupy your time and yourself with something, it's an occupation. Is your mind now blown?
Most important part: you get paid for it.
That's the common use but is by no means literal. An occupation is something with which you occupy yourself.
I guess if you are watching football or some other type of sport, perhaps.