Journal of Economics and Economic Education Research Volume 18, Issue 2, 2017 1 1533-3604-18-2-110 THE EFFECT OF ECONOMIC GROWTH IN RELATION TO UNEMPLOYMENT Shkumbin Misini, University Of Gjilan Myrvete Badivuku-Pantina, University Of Prishtina ABSTRACT The paper will include the macroeconomic analysis regarding economic growth under nominal GDP, in relation to the most important macroeconomic parameter, unemployment. The paper will also include the analysis of Gross Domestic Product, as an important measure of the economic growth, and that measures the living standard of the citizens of that country or state. Gross Domestic Product (GDP) is a more impeccable method for the analysis of all the transactions that are performed within a country, in order to display a macroeconomic analysis. The key point of this paper is the economic growth under nominal GDP, in relation to unemployment. The paper includes the analysis of the scatter plot graphs of nominal GDP in relation to unemployment, and also the analysis of descriptive statistic. The method of simple linear regression will be used when analysing the relation of nominal GDP in relation to unemployment. Keywords: Economic growth, Nominal GDP, Unemployment. JEL Classification: O 4, E 1, E 24 INTRODUCTION During the last years, Kosovo had the biggest economic growth in region, for as long as the regional economies are affected by financial crisis of 2008, and later on from Eurozone debt crisis, which has touched especially some of the main commercial and investing partners in Kosovo. While Croatia and Serbia faced recession, Macedonia and Albania had a small economic growth, whereas in 2012 Kosovo had an economic growth of 3.9% of Gross Domestic Product (Pula, 2013). And, since the beginning of the financial crisis that gripped Eurozone during 2008-2012, the average economic growth of Kosovo was 4.5% (World Bank, 2012). The economic growth of Kosovo for 2016 was predicted to be 3.6%, a bit lower than in 2015 when it was 3.9%, whereas it is predicted that in 2018 the economic growth of Kosovo will reach to 3.7% (World Bank, 2016). Due to the reason of unemployment and poverty in the country, Kosovans are necessarily obliged to accept any job offer, despite poor working conditions. The Kosovan youth are disappointed when it comes to finding a job. This has a negative effect in the future success of Kosovan youth (Baleci & Heeman, 2013). A very small percentage of young people of Kosovo are engaged in self-employment (World Bank, 2010). The labour market in Kosovo is characterized with an increase in the unemployment rate, as new jobs have not been created in order to reduce unemployment and poverty in this country; this came due to the high market pressure of the labour force, regardless the fact that