Estimate the expected change in unemployment given a change in GDP growth using Okun's empirical relationship.
Typically ranges from -0.2 to -0.8
Typically ranges from -0.2 to -0.8
Primary Result
Okun's Coefficient
Relationship Strength
Calculated Coefficient
R-Squared
Data Points
ΔU = α + β × (GDP Growth - Trend Growth)
Or simplified: ΔU = β × GDP Growth
ΔU: Change in unemployment rate
α: Intercept term
β: Okun's coefficient (typically -0.5)
GDP Growth: Real GDP growth rate
United States
-0.4 to -0.6
European Union
-0.2 to -0.4
Developing Countries
-0.6 to -0.8
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