Abstract
The main objective of present paper is to investigate quantitatively the effect of economic growth on employment in Pakistan for 2015 through 1981. The study carries out Engle-Granger co-integration Approach and employment elasticity formula to capture the impact of economic growth on employment. The results of the study show that overall employment elasticity of growth in Pakistan for the study period is 0.45 which suggests that economic growth in Pakistan is employment creating. Co integration results are also consistent with results calculated through former method. The study concludes that economic growth in Pakistan between 1981 and 2015 acted as catalyst to create labor market at large. The study suggests that not only sustained and balance economic growth but process of economic growth, which generates new jobs, is extremely vital to increase the employment elasticity of growth.