This could be done with
feature called "Hide read labels." Turn it on from the Labs tab under Settings and all your labels without unread messages will be hidden under the "More" menu. Labels with unread messages will automatically show up, unless you've explicitly chosen to keep them hidden.I really can use this as I have way too many labels and way too many emails to be read and responded. On a side note, I love the way the GMail Spam Filter works, Super!
New in Labs: Hide read labels
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