Okun’s law – IMF Blog

The Evidence that Growth Creates Jobs: A New Look at an Old Relationship

IMFBlog2019-03-26T14:58:54-04:00November 9, 2016|

Versions in عربي (Arabic), Français (French), and Español (Spanish)

The link between jobs and economic growth is not always a straight line for countries, but that doesn’t mean it’s broken.

Economists track the relationship between jobs and growth using Okun’s Law, which says that higher growth leads to lower unemployment.

New research from the IMF looks at Okun’s Law and asks, based on the evidence, will growth create jobs? The findings show a striking variation across countries in how employment responds to GDP growth over the course of a year. […]

Jobs. Jobs. Jobs. Getting the Labor Markets Working Again

IMFBlog2017-04-15T14:00:55-04:00November 7, 2012|

The sharp and persistent rise in unemployment in advanced economies since the 2008-09 financial crisis is a hotly debated policy issue. Rightly so: High persistent unemployment has major human and economic costs, from loss of morale to loss of skills. More broadly, it seems to undermine the very fabric of society. An IMF conference explores how to revive labor markets.