The relationship between the unemployment rate and inflation is studied under microeconomics
How Inflation and Unemployment Are Related Phillips studied the relationship between unemployment and the rate of change of wages in the United Kingdom over a period of almost a full century The relationship between inflation rates and unemployment rates is inverse. Graphically, this means the short-run Phillips curve is L-shaped. A.W. Phillips published his observations about the inverse correlation between wage changes and unemployment in Great Britain in 1958.