Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of San Francisco
FRBSF Economic Letter
Okun’s law and the unemployment surprise of 2009
Mary C. Daly
Bart Hobijn
Abstract

In 2009, strong growth in productivity allowed firms to lay off large numbers of workers while holding output relatively steady. This behavior threw a wrench into the long-standing relationship between changes in GDP and changes in the unemployment rate, known as Okun’s law. If Okun’s law had held in 2009, the unemployment rate would have risen by about half as much as it did over the course of the year.


Download Full text
Download Full text
Cite this item
Mary C. Daly & Bart Hobijn, "Okun’s law and the unemployment surprise of 2009" , Federal Reserve Bank of San Francisco, FRBSF Economic Letter, number 07, 2010.
More from this series
JEL Classification:
Subject headings:
Keywords: Unemployment ; Productivity
For corrections, contact Federal Reserve Bank of San Francisco Research Library ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal