Abstract

The present study takes stock of linkage between economic growth and employment in Pakistan for the period 1981 to 2015 using data from Economic Survey of Pakistan through Johansen Co-integration technique. The study carries out ADF test to check the unit root in time series variables. The study also employs Granger causality test to find the causation of variables. The empirical results of the study suggest that there exists invariably long run relation between economic growth and employment. Granger causality test also suggests that economic growth causes employment. Long run estimation results reveal that there is positive and significant association between economic growth and employment in Pakistan. The study recommends making the economic growth pro-employment so as it benefits may be trickle down to poor.