Abstract:

Okun’s law being as one of the empirical relationship that express the relationship between the deviation of the unemployment rate and the deviation of the output growth became one of the most cited metrics regarding the rate of an unemployment. Despite having the explanatory or causal conclusions, it can provide guide to country stabilization policy and an indicator of its success. The main finding of this paper are that Okun’s law does not work perfectly on time series that include the turbulences on global market. We found the determination coefficient of regression model to be quite low: 0, 4781. The behaviour of GDP and UR are consistent in periods before crisis and after stabilization after crisis. The determination coefficients of regression are 0,846 and 0, 9617 respectively.  The effects of crisis and integration Slovak republic into Euro zone have some significant results on behaviour of indicators of labour market.