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Economics
Okun's Law
The rule that says when unemployment goes up by 1%, the economy usually shrinks by about 2%.
Okun's Law is a simple but useful shortcut economists use to connect job numbers with overall growth. It's not perfect every year but works well over time.It's like a seesaw — every time one side (unemployment) goes up, the other side (economic growth) drops almost twice as far.
Real world: During the 2008 recession, unemployment rose sharply and GDP fell even harder, exactly as Okun's Law predicted.
💡 Okun's Law is the quick way to translate unemployment headlines into how much the whole economy is hurting or healing.