The study investigated the effect of unemployment on economic growth of communities in Uganda. The major objective of the study was to examine the effect of unemployment on economic growth of communities in Uganda period. The specific objectives are to examine the trend of unemployment in Uganda, to estimate the relationship between economic growth and unemployment in Uganda. The study used secondary data from the International Labour Organisation for the unemployment data and Uganda Bureau of Statistics for the GDP data. The data was then analysed and presented using OLS, Augmented Dickey Fuller test to test for the presence of the unit root, the Johansen cointergration test was employed to test the existence of the long run relationship between economic growth and the independent variable which is unemployment. The null hypothesis of the study was that there was autocorrelation at lag order. If at a specified lag, the Calculated p-value was less than Critical (p<0.05), rejected the null hypothesis and concluded that there was autocorrelation. From the findings of the the residuals were not serially auto-correlated since the p-values were greater than critical value (p>0.05).