Unemployment and the GDP, the variables that Okun has used for it ̓s own analysis where he came to the conclusion that an increase of 1% in unemployment will cause a decre a se in GDP by 3%, can be good indicators for analysing in what conditions are the labour market and the level of economic growth. The analysis for Croatia and Slovakia, based on the econometric method using the VAR model, showed low coefficients in calculations of the Okun ̓s law that proved little changes wheather the variables parameters increase or decrease. The Croatian analysis showed a nonlinear relationship between the variables, regarding changes in unemployment will cause much more changes in GDP that the opposite situat ion. The Slovakian analysis showed an inverse situation that the one in Croatia regarding that a increase or decrease in GDP will have much more implications on unemployment that the opposite situation. The cause of these results is certainly in the way any country manages it ̓s own labour mark et policies and the differences between each country. Though Croatia and Slovakia have much simil iarties , Slovakia has proved that a little country can have a good management of it ̓s labour market making reforms in this area and the area of taxes, which is proved by the higher Okun ̓s coefficient achieved by strong economic growth increase. Only with strong economic growth increase it is possible to maintain or reduce the unemployment rate. Low Okun ̓s coefficient i n general show s a labour market rigidity with higher safety for workers and much more difficulties for the employer to hire new workforce. That example is well known in Croatia, in which many law regulations make it unattractive for FDI or maintaining alre ady existing employers. Every country, like said before, should lead it ̓s own macroeconomic policy, but for better management sometimes is good to see other good examples, like in this case Slovakia, that is a example of an little country that had a good transition only with reforms that changed the labour market and had positive effects on economic growth.