Abstract:

The paper empirically analyzed the relationship between GDP, Unemployment and Employment in the EU-28 economy in the period 2003-2014 using Eurostat data, descriptive statistics, correlation and regression functions. In the analyzed period, GDP increased by 35.15 %, but it declined in 2009 after the beginning of the economic crisis. Unemployment increased by 20.59 %, with the lowest level recorded in 2008 and then with the highest one in 2013. Employment increased only by 4.38 %, with the highest level in 2008 and a deep decline after and a slight growth of 1 % in 2014. A negative strong correlation, r = - 0.829 was found between GDP and unemployment, and a strong positive link, r = 0.731 was found between GDP and employment. The regression function confirmed that GDP and unemployment are negatively connected while GDP and employment are positively linked. Okun's Law was confirmed by the results, but the asymmetrical dynamics of the indices of the three macroeconomic indicators reflected the deep influence of the global economic crisis on the EU-28 economy.