Analysis of jobless growth

In this study, jobless growth is analyzed. Economic growth, employment and unemployment are important indicators that explain the economic performance of countries. Generally, economic growth is expected to increase production, income and employment. Okun's law, which stands out in theory, also explains the negative relationship between economic growth and unemployment rate. Accordingly, economic growth reduces unemployment. However, the fact that employment does not increase despite economic growth causes discussions on jobless growth. In this study, firstly, the relationship between economic growth and employment is explained theoretically. The jobless growth phenomenon has been evaluated comparatively for EU, G-7 and OECD countries. According to the analysis, the relationship between growth and employment differs from country to country. However, the effect of economic growth on reducing unemployment and increasing employment is generally confirmed. In Turkey, the long-term relationship between economic growth and unemployment for the period of 1980-2017 was investigated with the Engle-Granger cointegration test. Error correction model was used to analyze the short-term relationship. In addition, the causality relationship between the variables was investigated by the Granger causality test. According to the results of the study, a negative relationship was determined between economic growth and unemployment in Turkey. In addition, there is a two-way causality relationship between the variables. These findings show that jobless growth is not valid in Turkey.