# What market variables would be inversely proportional to unemployment?

**URL:** <https://boards.straightdope.com/t/what-market-variables-would-be-inversely-proportional-to-unemployment/675353>\
**Category:** Factual Questions\
**Created:** [December 3, 2013, 6:47am UTC](https://boards.straightdope.com/t/what-market-variables-would-be-inversely-proportional-to-unemployment/675353 "2013-12-03T06:47:16Z")\
**Posts on this page:** 4\
**Page:** 1

<div class="post-metadata">

**Author:** ![davidmich](https://avatars.discourse-cdn.com/v4/letter/d/e56c9b/32.png) [@davidmich](https://boards.straightdope.com/u/davidmich)\
**Post date:** [December 3, 2013, 6:47am UTC](https://boards.straightdope.com/t/what-market-variables-would-be-inversely-proportional-to-unemployment/675353/1 "2013-12-03T06:47:16Z")

</div>

Hi,  
Which market variables would be inversely proportional to unemployment?Bond and stocks are inversely proportional to each other So are bond prices and yields (interest rates). What about employment/unemployment?

I look forward to your feedback  
davidmich

---

<div class="post-metadata">

**Author:** ![Isamu](https://avatars.discourse-cdn.com/v4/letter/i/7c8e57/32.png) [@Isamu](https://boards.straightdope.com/u/Isamu)\
**Post date:** [December 3, 2013, 6:50am UTC](https://boards.straightdope.com/t/what-market-variables-would-be-inversely-proportional-to-unemployment/675353/2 "2013-12-03T06:50:31Z")

</div>

Neckties.

---

<div class="post-metadata">

**Author:** ![the\_diego](https://avatars.discourse-cdn.com/v4/letter/t/7bcc69/32.png) [@the\_diego](https://boards.straightdope.com/u/the_diego)\
**Post date:** [December 3, 2013, 7:21am UTC](https://boards.straightdope.com/t/what-market-variables-would-be-inversely-proportional-to-unemployment/675353/3 "2013-12-03T07:21:23Z")

</div>

Aside from interest rates (directly affects investments), you have inflation (which can affect consumption), and the government deficit (which can affect government spending.)

---

<div class="post-metadata">

**Author:** ![davidmich](https://avatars.discourse-cdn.com/v4/letter/d/e56c9b/32.png) [@davidmich](https://boards.straightdope.com/u/davidmich)\
**Post date:** [December 3, 2013, 9:40am UTC](https://boards.straightdope.com/t/what-market-variables-would-be-inversely-proportional-to-unemployment/675353/4 "2013-12-03T09:40:04Z")

</div>

Thanks the diego. I’d like your opinion of these sites and info.

1. [http://pages.stern.nyu.edu/~dbackus/Global\_Economy/Logistics/GP5/Group\_Project\_\_5\_cbp242\_Global\_Economy\_\_\_Project\_5\_FINAL.pdf](http://pages.stern.nyu.edu/~dbackus/Global_Economy/Logistics/GP5/Group_Project __5_cbp242_Global_Economy___ Project_5_FINAL.pdf)

US Unemployment Rate – Unemployment moves inversely with GDP growth  
and was very high during the financial crisis and decreased as the economy  
improved. Similarly with the housing starts, there was a slight change in  
direction in 2009, so it isn’t clear whether unemployment is stabilized just yet.

1. 

[http://www.econ.yale.edu/~nordhaus/homepage/documents/Unem\_2011\_post.pdf](http://www.econ.yale.edu/~nordhaus/homepage/documents/Unem_2011_post.pdf)

Okun’s Law: unemployment moves inversely with Y  
Beveridge Curve: Unemployment moves inversely with  
vacancy rate (later)  
Phillips Curve: Inflation moves inversely with  
unemployment (Monday)