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In this paper, I explored how a range of regression and machine learning techniques can be applied to monthly U.S. unemployment data to produce timely forecasts. I compared seven models: Linear Regression, SGDRegressor, Random Forest,…

Machine Learning · Computer Science 2025-05-06 Kyungsu Kim

Artificial intelligence is reshaping labor markets, yet we lack tools to systematically forecast its effects on employment. This paper introduces a benchmark for evaluating how well large language models (LLMs) can anticipate changes in job…

Computation and Language · Computer Science 2025-10-28 Sheri Osborn , Rohit Valecha , H. Raghav Rao , Dan Sass , Anthony Rios

It is customary for researchers and practitioners to fit linear models in order to predict NBA player's salary based on the players' performance on court. On the contrary, we focus on the players salary share (with regards to the team…

Applications · Statistics 2022-02-07 Ioanna Papadaki , Michail Tsagris

Predicting the economy's short-term dynamics -- a vital input to economic agents' decision-making process -- often uses lagged indicators in linear models. This is typically sufficient during normal times but could prove inadequate during…

General Economics · Economics 2024-05-21 James T. E. Chapman , Ajit Desai

We present a deep learning approach for forecasting short-term employment changes and assessing long-term industry health using labor market data from the U.S. Bureau of Labor Statistics. Our system leverages a Long- and Short-Term…

Statistical Finance · Quantitative Finance 2025-07-04 Adam Nelson-Archer , Aleia Sen , Meena Al Hasani , Sofia Davila , Jessica Le , Omar Abbouchi

Researchers today have found out the importance of Artificial Intelligence, and Machine Learning in our daily lives, as well as they can be used to improve the quality of our lives as well as the cities and nations alike. An example of this…

Computers and Society · Computer Science 2021-05-18 Karampudi Radha , Mekala Rohith

Purpose - Inefficient hiring may result in lower productivity and higher training costs. Productivity losses caused by absenteeism at work cost U.S. employers billions of dollars each year. Also, employers typically spend a considerable…

Machine Learning · Computer Science 2022-02-09 Gopal Nath , Antoine Harfouche , Austin Coursey , Krishna K. Saha , Srikanth Prabhu , Saptarshi Sengupta

We investigate the effectiveness of different machine learning methodologies in predicting economic cycles. We identify the deep learning methodology of Bi-LSTM with Autoencoder as the most accurate model to forecast the beginning and end…

General Economics · Economics 2021-07-26 Zihao Wang , Kun Li , Steve Q. Xia , Hongfu Liu

Despite their popularity, machine learning predictions are sensitive to potential unobserved predictors. This paper proposes a general algorithm that assesses how the omission of an unobserved variable with high explanatory power could…

Understanding the business cycle is crucial for building economic stability, guiding business planning, and informing investment decisions. The business cycle refers to the recurring pattern of expansion and contraction in economic activity…

Machine Learning · Computer Science 2024-06-17 Elvys Linhares Pontes , Mohamed Benjannet , Raymond Yung

Among other macroeconomic indicators, the monthly release of U.S. unemployment rate figures in the Employment Situation report by the U.S. Bureau of Labour Statistics gets a lot of media attention and strongly affects the stock markets. I…

Trading and Market Microstructure · Quantitative Finance 2018-05-02 Johannes Bock

The relationship between inflation and predictors such as unemployment is potentially nonlinear with a strength that varies over time, and prediction errors error may be subject to large, asymmetric shocks. Inspired by these concerns, we…

Econometrics · Economics 2022-03-01 Todd E. Clark , Florian Huber , Gary Koop , Massimiliano Marcellino

Historical studies of labor markets frequently lack data on individual income. The occupational income score (OCCSCORE) is often used as an alternative measure of labor market outcomes. We consider the consequences of using OCCSCORE when…

Applications · Statistics 2019-09-24 Martin Saavedra , Tate Twinam

Large language models (LLMs) are increasingly used to predict human behavior. We propose a measure for evaluating how much knowledge a pretrained LLM brings to such a prediction: its equivalent sample size, defined as the amount of…

Econometrics · Economics 2026-01-21 Wayne Gao , Sukjin Han , Annie Liang

Skill shortages are a drain on society. They hamper economic opportunities for individuals, slow growth for firms, and impede labor productivity in aggregate. Therefore, the ability to understand and predict skill shortages in advance is…

General Economics · Economics 2021-02-05 Nik Dawson , Marian-Andrei Rizoiu , Benjamin Johnston , Mary-Anne Williams

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…

General Finance · Quantitative Finance 2011-09-21 Ivan Kitov , Oleg Kitov

Predictions and forecasts of machine learning models should take the form of probability distributions, aiming to increase the quantity of information communicated to end users. Although applications of probabilistic prediction and…

Machine Learning · Statistics 2024-03-19 Hristos Tyralis , Georgia Papacharalampous

The lack of interpretability and transparency are preventing economists from using advanced tools like neural networks in their empirical research. In this paper, we propose a class of interpretable neural network models that can achieve…

Econometrics · Economics 2020-12-01 Yucheng Yang , Zhong Zheng , Weinan E

We investigate the potential implications of large language models (LLMs), such as Generative Pre-trained Transformers (GPTs), on the U.S. labor market, focusing on the increased capabilities arising from LLM-powered software compared to…

General Economics · Economics 2023-08-22 Tyna Eloundou , Sam Manning , Pamela Mishkin , Daniel Rock

Determining the job is suitable for a student or a person looking for work based on their job's descriptions such as knowledge and skills that are difficult, as well as how employers must find ways to choose the candidates that match the…

Computation and Language · Computer Science 2020-02-03 Tin Van Huynh , Kiet Van Nguyen , Ngan Luu-Thuy Nguyen , Anh Gia-Tuan Nguyen
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