Data is collected in the form of time series in the form of annual that is quantitative in the past years 1999-2014 .Data analysis technique used namely research namely adopting both granger causality cointegration test and test and correlation analysis. The results of a test using granger causality cointegration test and test .Granger causality analysis test can be seen that the unemployment rate influences the level of inflation in East Java and inflation does not influences the level of unemployment in East Java. The analysis correlation it can be seen that there is the relationship between child inflation with the unemployment rate, this is shown obtained correlation value of 0,610 and a sig. = 0,012 .That means that there is a strong correlation between the level of inflation with the unemployment rate which has indicated by the correlation figure among 0,60-0,799 range . Keywords: Inflation Rate and Unemployment Rate
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