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Steady GDP growth translates to improved unemployment rate

  • ​Since the trough of the recession in 2010, Denver metro has recorded steady year-over-year gains in GDP growth, measuring a 31.0 percent increase in seven years. Though the rate of expansion seems to be leveling off, which could be another indicator that a stabilization period is upon us, it is still forecasted to increase 2.4 percent between 2016 and 2017.
  • According to Okun’s Law, as GDP increases, unemployment is inversely affected. While this has been proven to hold true in most situations, there are some limitations in that GDP has no ceiling but unemployment does indeed have a floor and a too-low unemployment rate could also have negative implications on GDP.
  • As we adjust to a new normal in what is the longest growth period ever experienced, we can expect to see a shift in the unemployment rate within the metro that will allow for a greater chance of continued improvement in the local economy. ​

Source: JLL Research​

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