Does Economic Growth Exhibit a Different Impact on Job Creation and Job Destruction?

The aim of this paper is to empirically investigate the link between economic growth and unemployment, using microeconometric evidence for the United Kingdom. The results show a significant and negative relation between unemployment and economic growth, using fixed effects panel regression methods. This implies that faster sectoral change, driven by higher rates of innovation and therefore by higher rates of economic growth, would foster structural unemployment. Moreover, we find that economic growth even more strongly influences job creation and job destruction.