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Okun’s Law Breaks as Jobless Rate Unexpectedly Falls: Tom Keene

A gauge known as Okun’s Law that’s historically used to predict the U.S. unemployment rate based on the economic growth outlook is “broken,” according to Goldman Sachs Inc.

Okun’s law indicated the unemployment rate should have remained steady when the rate unexpectedly dropped 1.7 percentage points from a recent peak, Andrew Tilton, a senior economist in New York at the firm, said in an interview today on “Bloomberg Surveillance” with Tom Keene and Ken Prewitt.