This study was conducted to elaborate the relationship between economic growth, employment and unemployment, which are the most important indicators of macro-economic performance. For this purpose, first conceptual explanations were made and then empirical VAR analysis, impact response analysis, variance survey method, traditional Granger causality test and least squares method were applied and tried to be explained.
As far as national and international literature is concerned, there are different views on the symmetry, direction or meaning of the relationship between economic growth, labor and employment. These surveys were generally done by analyzing the Okun Law and adding only two variables. In this study, manufacturing industry index, value of public expenditure and fixed capital investments were added to make the model more meaningful and obtain more healthy analysis results.
When the studies for the Turkish economy are examined, especially studies considering the years of 2000, it is found that economic growth can not solve the problem of unemployment and the growth without employment is also valid. When the economic growth rates are examined, it is observed that the unemployment rate remained high and did not fall despite the positive growth in the post-2000 period except for the 2001 crisis and the 2008 global crisis.
It is understood that between 2000 and 2016 there is a weakrelationship between economic growth and unemployment. The smallest squares estimation results showed a 1% increase in economic growth has lowered the unemployment rate by 0.1% and it was supported by the Granger causality test, and the economic growth was the cause of unemployment within the 5% statistical meaning level.
All these results show that economic growth has a positive effect on employment, and unlike the current literature, a relatively strong employment-generating growth performance has been experienced in recent years.