  We have modeled the employment/population ratio in the largest developed
countries. Our results show that the evolution of the employment rate since
1970 can be predicted with a high accuracy by a linear dependence on the
logarithm of real GDP per capita. All empirical relationships estimated in this
study need a structural break somewhere between 1975 and 1995. Such breaks
might be caused by revisions to monetary policy (e.g. inflation targeting)
or/and changes in measurement units. Statistically, the link between measured
and predicted rate of employment is characterized by the coefficient of
determination from 0.84 (Australia) to 0.95 (Japan). The model residuals are
likely to be associated with measurement errors.
