How much growth do we need to reduce unemployment?

Paul Krugman had an interesting post on this question a while back (October 29th) which I dug up because the unemployment rate has hit 10.2%.

The vertical axis represents a change in unemployment, so to get back to 7% unemployment we would need GDP growth of 7-8%. We are currently thrilled that it is no longer negative (last quarter it was around 3%).

Copyright 2009 Tne New York Times


Click here to read Krugman's blogpost.