Abstract:
This study is conducted to examine the impact of inflation & population on unemployment rate
of Pakistan & establish relationship, a case study of 50 years of Pakistan economics. This study
uses the SPSS software to analysis the data in order to find out the long run relationship among
unemployment; inflation, population and behavior in economic growth. I find evidence
supporting the view that inflation in general is positively correlated with unemployment rate of
the country. It also find out that population is also driven factors for rising unemployment. Apart
from the study of all the countries combined, I separately analyze the effect of inflation on
unemployment rate to see whether the effect of inflation is similar or different in countries with
different levels. I find that although in most of the cases unemployment shows a positive and
statistically significant correlation with inflation and population, however, in the case of low
income countries, the relationship between unemployment, inflation and population is negative
and statistically insignificant under certain specifications.
