Unemployment has great importance between the macroeconomic problems..Unemployment is one of the major variables that depicts the health of an economy.A higher unemployment means that people can not get according to their wants and skills.The task of Growth is to share profit in the national income. They show a positive relationship between higher rates of profit and higher rates of growth. Higher growth is achieved through profits effective on the rate of investment. Economic growth and unemployment are inversely related along the business cycle in the short run.Unemployment is affected by the long term growth change.Because of this fact European unemployment raise in the 1970s and 1980s . The decline in the rate of economic growth raises the issue of unemployment. Obadan (1997) and Sagbamah (1997) Growth and unemployment go in reverse track. When the growth rate increases, it will fall unemployment rate.On the other hand, decline in employment (which is unemployment) will guide to decrease in production and thus in economic growth.Unemployment is also the increasing fact in Pakistan. The unemployment rate rise during the period of 1990s because of fiscal reduction and the low rates of economic growth or some other factors in Pakistan (Akhtar&Shahnaz, 2005).The views of different economists that economic growth is important to reduce the unemployment. Solow (1956) suggested that the economic growth result reduction in unemployment because when saving high it