Co-movement of Labour Market Variables

Labour Market Variables

1) Employement: measured by the proportion of the population in employment or self-employment

2) Labour Prodcutivity: average amount of output produced per worker (i.e. GDP divided by employment)

3) Real Wage: average wage among those employed

Employment

Cyclicality: pro-cyclical (correlation coefficient 0.80)

Variability: Less variable (standard deviation measure 61.5%)

Timing: lagging variable (when the economy is up, more people are in employment, when the economy is down, less people are in employment

Labour productivity

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