The present study takes stock of linkage between economic growth and employment inPakistan for the period 1981 to 2015 using data from Economic Survey of Pakistan throughJohansen Co-integration technique. The study carries out ADF test to check the unit root intime series variables. The study also employs Granger causality test to find the causation ofvariables. The empirical results of the study suggest that there exists invariably long runrelation between economic growth and employment. Granger causality test also suggests thateconomic growth causes employment. Long run estimation results reveal that there is positiveand significant association between economic growth and employment in Pakistan. The studyrecommends making the economic growth pro-employment so as it benefits may be trickledown to poor.
Keywords: Co-integration, Economic Growth, employment, Pakistan