Unemployment rates accurately predicted by real economic growth in developed countries.
Unemployment rates in developed countries can be predicted by changes in real economic growth. A model based on real GDP per capita and unemployment rates from 2010 to 2019 shows a strong connection between the two factors. The model uses a piecewise linear approach to represent this relationship, with different time segments for each country. The results indicate a high level of accuracy in predicting changes in unemployment rates based on economic growth, with coefficients of determination ranging from 0.866 to 0.977 for different countries. The findings suggest that there is no structural unemployment in these developed countries.