Predicting Employment Rates Based on Economic Growth Could Revolutionize Labor Market.
The researchers studied how employment rates in developed countries are related to economic growth. They found that the employment rate can be predicted accurately based on the country's real GDP per person. The relationship between employment and GDP changed between 1975 and 1995, possibly due to changes in monetary policy or measurement methods. The accuracy of the predictions varied between countries, with Japan having the highest accuracy. Any differences between predicted and actual employment rates are likely due to measurement errors.