# Okun's Law

*Macro & Economy — Finicade finance glossary*

The rough rule that when output grows faster than usual, unemployment falls — and vice versa. It links the GDP and jobs numbers, giving a back-of-envelope read on the labour market.

**Also known as:** okun-s-law

**Related terms:** [GDP (Gross Domestic Product)](https://finicade.com/glossary/gdp), [Unemployment Rate](https://finicade.com/glossary/unemployment-rate), [Output Gap](https://finicade.com/glossary/output-gap)

**Taught in:** Macro & Markets — Unemployment: Counting the Idle

Source: https://finicade.com/glossary/okuns-law