THE RELATIONSHIP BETWEEN THE GDP AND UNEMPLOYMENT RATE IN NORTH MACEDONIA

Abstract

This research investigates the relationship between unemployment, employment and economic growth in North Macedonia. Access to decent work is one of the most important conditions for inclusion, as this may lead to improvements in other areas of life. However, participation in economic life does not always lead directly to economic inclusion. Employment means more than just getting paid. He is like that the case of informal labor that is not adequately paid, employment that is not decent, or profitable, as well as illegal jobs. In the first years of the transition in North Macedonia, the unemployment rate rose sharply. The job market offered new opportunities, but it also required new skills, which resulted in a mismatch between the skills needed employers and those who owned workers, who are more present in certain sectors and age groups. n the region, the youth unemployment rate is very high. In most countries in the region the unemployment rate for people under 25 has dropped to an average of 50.8 percent in 2010 to 47.7 percent in 2015 Using annual data from the State Statistical Office of the Republic of Macedonia, covering the period of 2000-2019, time series techniques are used to test the relation between unemployment, employment and GDP in order to obtain to obtain results. Macroeconomic analysis regarding economic growth under nominal GDP were used to determine the correlation between the applied indicators from the space of correlation analysis, the Spearman’s Correlation Coefficient Method was used, while to determine the impact on GDP, regression analysis was used. The SPSS application software package was used for data processing. The empirical results suggested that the lack of economic growth does not explain the unemployment problem in North Macedonia. Despite continuous economic growth, its effect on unemployment reduction is little. Therefore, the following analysis will elaborate the relation between GDP and the unemployment rate.